His Excellency the Deputy Minister of Industry and Mineral Resources for Mining Affairs, Engineer Khalid bin Saleh Al-Mudaifer, affirmed that the Kingdom of Saudi Arabia has achieved a qualitative leap in the mining sector, witnessing an unprecedented and radical transformation that has placed the Kingdom at the forefront of the global stage. He explained that this progress is clearly reflected in the Fraser Institute's 2024 Mining Investment Attractiveness Index, where the Kingdom jumped from 104th place in 2013, when it was classified as a destination with limited attractiveness, to 23rd place globally today. This underscores the success of national strategies in making mining the third pillar of national industry within the objectives of the Kingdom's Vision 2030.
Strategic context and latent wealth
This achievement is the culmination of the Kingdom's tireless efforts to exploit its natural resources in the Arabian Shield, a geologically rich region containing precious and base minerals. As part of its Vision 2030, the Kingdom is working to diversify its sources of income and reduce its dependence on oil by investing heavily in infrastructure and mining legislation. This transformation is part of a broader economic drive aimed at attracting foreign direct investment and localizing modern technologies in the mining sector, thereby strengthening the Kingdom's position as a global logistics and industrial hub connecting three continents.
Global demand challenges and critical minerals
During his participation in a panel discussion titled “A Race Against Time: Ensuring Mineral Availability and Creating New Markets” at the International Mining Conference, Al-Mudaifer addressed the challenges facing global supply chains. He pointed out that the world no longer needs only traditional metals such as aluminum, iron, and copper, but has a pressing need for specialized and rare metals such as lithium, rare earth elements, tungsten, and gallium. These metals, despite their relatively small demand compared to basic commodities, are considered the “vitamins of modern industry,” as the future of advanced industries, such as electric vehicles, drones, semiconductors, and renewable energy technologies, is unimaginable without them.
The government's role in reducing risks
His Excellency emphasized that the nature of rare earth metals markets is characterized by sharp price fluctuations and a small market size, making investment in them highly risky for individual private sector entities. This is where the pivotal role of governments comes in, not only in providing the necessary infrastructure such as energy and water, but also in developing financial and legislative tools like the Kingdom's National Minerals Program. This program aims to mitigate risks and ensure the continuity of financing and supply, thereby creating a safe and sustainable investment environment.
Record numbers in exploration
Al-Mudaifer presented figures demonstrating the Kingdom's commitment to this issue, revealing that spending on mineral exploration has increased fivefold over the past five years. Expenditure rose from less than $28 (105 riyals) per square kilometer in 2020 to approximately $144 (539 riyals) per square kilometer in 2024, exceeding the targets set for 2025. This spending reflects the Kingdom's commitment to uncovering its geological resources and providing accurate data to investors.
Call for global partnership
The Deputy Minister of Industry concluded his remarks by emphasizing that the comprehensive mining strategy launched in 2018 is not limited to extraction alone, but aims to build an integrated system that includes developing Saudi human resources and fostering innovation. He called on the world to partner with the Kingdom, comparing the current ambition to the historical successes Saudi Arabia has achieved in the oil and petrochemical sectors, making the Kingdom today a global hub for innovation, mining technologies, and venture capital in this vital sector.
