Saudi Arabia announced it is investing $12 billion in its aluminum sector. Khalid Al-Mudaifer, Saudi vice minister for Mining Affairs made the revelation during the launch of the Arab International Aluminum Conference (ARABAL) in Riyadh.
Saudi industrial ambitions
According to Al-Mudaifer, Saudi Arabia is also aiming to double its investments in the sector. It seeks to become one of the world’s top 10 largest producers of aluminum. The recent investment is part of the more than SAR120 billion ($32 billion) it will invest in the mining industry.
Saudi Arabia is keen on industrial development and progress in various fields in line with its goal to diversify its non-oil economy as part of its Vision 2030 ambitions. The mining and metals industry is the third pillar of Saudi industrial strategy. With its rich mineral deposits, it has the potential to lead the sector and support its goals to transition to a more sustainable future.
For his part, Robert Wilt, CEO of Ma’aden, expressed his company’s commitment to becoming a major player in Saudi Arabia’s economic diversification initiatives.
Ma’aden is the largest mining company in the Middle East and one of the fastest-growing in the world. Its revenues reached SAR40.3 billion ($10.7 billion) in 2022.
According to Wilt, “The world needs a 40 percent increase in aluminum in the next decade. Ma’aden represents 10 percent of the world’s collective aluminum production.”
Automobile and bauxite mining sector
In his statement at the event, Wilt mentioned that Ma’aden currently produces aluminum sheets for the production of aluminum cans. He further said that the company is eyeing opportunities in the automotive sector and is keen to pursue growth in this sector, among others. Hence, it is targeting companies such as Jaguar, Land Rover, BMW, and Hyundai for its aluminum production.
Wilt explained that many of Ma’aden’s resources come from low-concentration bauxite mining. It is one of the basic raw materials in aluminum production. Moreover, Ma’aden has enough bauxite reserves for at least 40 years to support aluminum manufacturing.
He added that “through what we are doing now, we have the lowest cost in terms of the integrated value chain derived from bauxite.”
Wilt expressed the company’s desire to grow further in this field, and to benefit from its logistical advantages. This includes low-cost energy and other forms of energy.
Read: Saudi raises mining sector’s GDP contribution target to $80 bn
ARABAL, the only aluminum conference in the world
On Wednesday, the twenty-fifth session of ARABAL launched, organized by Ma’aden under the patronage of the Saudi Minister of Industry and Mineral Resources.
It is the premier event for the aluminum industry in the Middle East. The conference also hosted an international exhibition, highlighting the future of sustainable aluminum.
During his opening speech, the Minister of Industry and Mineral Resources, stated: “We have an aspiration to become a global center for mineral production. We believe that the Kingdom possesses all the competitive advantages that enable it to achieve this vision and equitable energy. The geographical location of the country is strategic, and all these factors will enable achieving this goal.”
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