Khalid Al-Mudaifer says Saudi Arabia will increase its mining sector and construct a brand new … [+] A global companion in keeping with the Saudi 2030 Imaginative and prescient.

Ministry of Mines Saudi Arabia

Joseph Hammond

Saudi Arabia is thought all over the world for its huge oil reserves, however its huge mining potential has obtained little consideration till now. Zenger Information reported that he met with Deputy Minister for Mining Khalid Al-Mudaifer, Ministry of Trade and Mineral Sources, to debate the event of Saudi Arabia’s mining sector. This contains partnerships to develop the phosphate mining trade with American nations.

Khalid was CEO of a Saudi Arabian mining firm (Ma’aden) at a time when revenues greater than doubled to succeed in US$4 billion. He instructed Zenger Information forward of the Future Miniral Discussion board, an funding convention scheduled to be held in Saudi Arabia later this month.

Q: Australia is among the most mature mining markets on this planet and you’ve got been there many occasions. What can Saudi Arabia study from Australia?

Reply: Australia is among the main mining nations and one of many world’s largest mineral producers. The geographical distance between the 2 could not make them candidates for emulation, however they share a need to develop the mining market and implement sustainable practices.

Saudi Arabia’s mining trade is a vital a part of the diversification of the economic system that’s a part of Saudi Imaginative and prescient 2030. We see mining because the third potential pillar of business development, after oil and gasoline and petrochemicals.

Attaining this requires experience and know-how, and there is no higher place to seek out it than in Australia, the place mining accounts for 10% of GDP. South Africa can be a superb instance of a rustic with a developed mining trade.

Q: The event of Saudi Arabia’s oil trade is state-led and owned. Do you foresee an analogous mannequin in driving the expansion of Saudi Arabia’s mining sector?

A: We see mining development in Saudi Arabia largely pushed by the personal sector. That is in keeping with Saudi Imaginative and prescient 2030 to maximise earnings within the mining sector. As codified underneath Saudi regulation, the Saudi mining sector will probably be open to all members. We’re at the moment conducting an bold geological survey to verify estimates that recommend Saudi Arabia has $1.3 trillion in mineral reserves.

The method of making use of for a license has been streamlined and digitized. Data associated to the funding ecosystem will probably be obtainable on-line. In growing new mining legal guidelines, we realized from Australia, Canada and international finest practices.

The outcomes converse for themselves, as the key adjustments in Saudi Arabia with bauxite, aluminum and coal reveal. We additionally know that Saudi Arabia has wealthy reserves of coal, copper, zinc, phosphate, uranium and gold. Potential phosphate reserves alone quantity to 7.3 billion tons. In reality, we’re working with a US firm to develop the potential of Kingdom Phosphate.

Q: Saudi Arabia will quickly host the Future Minerals Discussion board. What’s your imaginative and prescient for this?

A: It is a easy indisputable fact that we want extra minerals to steer the transition to a much less carbon-intensive economic system. We have to produce new instruments and produce extra sustainably. We imagine the Future Minerals Discussion board will probably be a very powerful mining occasion for the superregion together with Africa, Center East, West and Central Asia. A dialogue between buyers, managers and NGOs to agree on future mining challenges. We will not have the posh we wish till we regain the belief of the world. Our purpose is for this to turn into a global and preeminent international discussion board.

Q: Saudi Arabia will not be as established as different mining markets. How do you pitch to potential buyers?

A: Saudi Arabia is present process a robust transformation. Mining is a part of it, and we imagine it’s going to turn into the third pillar of business development. Saudi Arabia is untapped by way of mining and has excessive potential. Saudi Arabia is a G20 economic system. It’s a protected and safe place with a superb educated workforce that may be very welcoming to overseas corporations eager about mining. The Saudi ecosystem and ease of doing enterprise make it top-of-the-line choices for miners and mineral processing. There’s additionally a five-year incentive grace interval for brand spanking new mines and different incentives.

Q: There’s at the moment a motion in direction of sustainability within the mining trade. What impact does it have on the Ministry of Schooling?

A: We’re positioning the Kingdom in keeping with the present transfer in direction of renewable vitality. For instance, the event of “inexperienced hydrogen” to provide “inexperienced metal”. Our location can be a singular location with quick access to Europe, Africa and Asia, with a whole lot of tens of millions of customers inside brief flights. So I stress to buyers the potential now we have right here and we’re not going to cease. We’re engaged on new laws to make mining investments simpler and extra environmentally pleasant. Due to this fact, the growing demand for minerals offers him all this profit in a single jurisdiction.

One other essential side of the ‘inexperienced economic system’ is electrical car batteries, the manufacture of which is usually a advanced course of. Right here in Saudi Arabia, there are a lot of events eager about mining supplies for electrical automobiles. Consistent with Imaginative and prescient 2030, we purpose to provide 300,000 automobiles and automobiles annually. We’re at the moment engaged on 10 mega tasks involving inexperienced metal and aluminum. So with growing demand each inside Saudi Arabia and from the higher area, he will get all this profit in a single jurisdiction.