In a strategic move reflecting the Kingdom of Saudi Arabia’s commitment to developing its industrial sector and diversifying its economy, the Kingdom, represented by the Ministry of Industry and Mineral Resources, signed three high-level international memoranda of understanding for cooperation in the field of mineral resources with the Republic of Chile, the State of Canada, and the Federative Republic of Brazil.
Details of the new agreements
The signing ceremony took place on the sidelines of the Fifth International Ministerial Meeting of Mining Ministers, held in Riyadh, the capital, as part of the Fifth International Mining Conference, from January 13 to 15. The agreements included:
- A memorandum of understanding with the Ministry of Mining in Chile , which is a major player in the global lithium and copper market.
- Memorandum of Understanding with the Department of Natural Resources of Canada , a leader in sustainable mining technologies and mining legislation.
- A memorandum of understanding with the Ministry of Mines and Energy in Brazil , which possesses huge reserves of iron ore and strategic minerals.
The third pillar of Saudi industry
These moves come within the framework of the Kingdom's Vision 2030, which has established the mining sector as the third pillar of national industry, alongside oil, gas, and petrochemicals. The Kingdom seeks to exploit its untapped mineral wealth, recently estimated at approximately 9.4 trillion riyals (US$2.5 trillion), which includes vital minerals such as gold, phosphate, copper, and zinc, as well as rare earth elements essential for modern technology industries.
The importance of partnerships and their global impact
The importance of these agreements is not limited to the local level, but extends to include a direct global impact on supply chains:
- Cooperation with Chile: Enhances the Kingdom’s position in the field of minerals needed for the energy transition, especially in the electric vehicle battery industry.
- The partnership with Canada opens up prospects for the transfer of advanced technology in geological surveying and environmentally friendly mining, raising sustainability standards in Saudi projects.
- The alliance with Brazil: ensures integration in mineral resources that support food security (via phosphates and fertilizers) and heavy industries.
Riyadh... the capital of mining decision-making
The fifth edition of the International Minerals Mining Conference (IMMC) saw the largest level of representation ever recorded globally, with the participation of more than 100 countries, including all G20 members, the European Union, and 59 international organizations. This strong attendance underscores Riyadh’s emergence as a global platform for leading dialogue on the future of minerals, particularly in the region stretching from Africa to West and Central Asia, now known as the “Greater Mining Region.” The Kingdom aims to spearhead international efforts to secure resilient supply chains for the critical minerals the world needs to address the challenges of climate change and the transition to clean energy.
