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Khalid Almudaifer, Vice Minister of Industry and Mineral Resources
The mining became one of the key developmental sectors that contribute to the Saudi economy, in line with Vision 2030, Khalid Almudaifer, Vice Minister of Industry and Mineral Resources, told Argaam.
On the sidelines of the Future Minerals Forum (FMF) today, Jan. 4, Almudaifer said the Kingdom has major investments worth SAR 120 billion in iron, aluminum, car batteries and metal projects since last year, due to the economic transformation in the Kingdom, advantages offered to investors and strategic location.
The FMF aims to lure investments, Almudaifer said, noting that many of the companies that participated in the first edition of the forum obtained 20-30% of the exploration licenses in the Kingdom. In addition, they participated in auctions for the mining sites announced by the ministry, such as the Khnaiguiyah site.
The first edition witnessed great interest from other countries and international investors, which encouraged the Kingdom to organize the second edition, Almudaifer said. He added that the second edition witnessed an increase in the number of participant countries to 60, compared to 38 a year earlier. In addition, 10 international and regional organizations participated in the event, compared to two organizations a year before.
More than 75 international companies, including three out of the largest five international companies, participated in the FMF for the first time, the top official said. He added that the great interest paid by ministers, global and international organizations, investors, miners and investment funds demonstrates the Kingdom’s success in attracting and developing a plan for the future of minerals in the region that spans from Africa to Central and Western Asia.
The total number of granted licenses exceeded 500, of which 210 were offered in 2022. This is double the number of licenses granted in 2021.
The growth in the number of licenses offered by the Kingdom shows the world’s interest in the local mining sector, Almudaifer said, noting that 16 mining licenses were issued in 2022, a rise of 60% compared with a year earlier.
Saudi Arabia holds an estimated $1.3 trillion worth of mineral resources. It also aims to increase the mining sector’s contribution to gross domestic product (GDP) to $64 billion by 2030, according to data available with Argaam.
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