Bandar Alkhorayef, Saudi’s minister of Industry and Mineral Resources, revealed that the Kingdom has adjusted its target for the sector’s contribution to its GDP. The revised objective is to achieve a range of $70 billion to $80 billion by the year 2030.
The minister further underscored that Saudi Vision 2030 centers around economic diversification, recognizing mining and industry as significant opportunities in this endeavor.
Previous estimates had indicated that the mining sector’s contribution to Saudi’s GDP would reach $64 billion by the year 2030.
In a session held on the sidelines of the Saudi-Arab-African Economic Conference, it was announced that the Kingdom plans to update its forecast regarding the size of its current $1.3 trillion mineral reserves. This update, scheduled for January of next year, will unveil the ongoing efforts in conducting extensive geological surveys throughout the Kingdom.
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The minister expressed that when considering mining on a global scale, there is a recognition of its unfavorable reputation, inadequate returns, and negative environmental impact. AlKhorayef further highlighted the importance of learning from these lessons to foster a more impactful and socially responsible approach to mining.
He stressed that the economic value of minerals surpasses their financial value. The minister further highlighted that this unique characteristic enables the Kingdom to leverage its natural resources and capitalize on its strategic geographic location.
The minister stated that there is still ongoing effort to understand and assess the Kingdom’s mineral reserves, with current estimates standing at $1.3 trillion. Moreover, he revealed that the official estimates will be announced during the Future Minerals Forum, which will be hosted by Saudi in January of next year.
Robust sector
Alkhorayef commended the conference as an integral part of the sector’s strategy. Upon examination, it was determined that a platform was needed to facilitate discussions among stakeholders regarding the challenges and opportunities within the sector, and to foster its development. This is particularly crucial considering that the sector can be viewed as robust within the Middle East and Central Asia region, the minister said.
“We have initiated discussions with different countries and mining companies’ participants to establish this platform in Riyadh, Saudi Arabia. However, it is important to note that this platform is not limited to Saudi Arabia alone; it is a global platform with the objective of promoting the development of the mining sector worldwide,” the minister noted.
He added, “We have observed significant interest from other countries, particularly those that heavily rely on minerals, as they recognize the importance of ensuring a sustained flow of investment. This investment will play a crucial role in supporting African countries and Central Asia in bringing more minerals to the market.”
Ongoing efforts
The minister highlighted the alignment between the geological characteristics of Saudi Arabia and African countries, emphasizing the ongoing efforts in exchanging information, expertise, and engaging in extraction and refining activities with Africa.
“We have identified three handling zones in Africa that we will utilize to expand our reach to more African countries in terms of transportation, distribution, and the establishment of simple industries,” the minister noted.
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