Iron witnessing high demand; 40% of Arabian Shield surveyed: Almudaifer

Khalid Almudaifer, Vice Minister for Mining Affairs, Ministry of Industry and Mineral Resources

Demand for iron ore is witnessing a significant surge in Saudi Arabia due to the ongoing mega projects of more than SAR 5 trillion, Khalid Almudaifer, Vice Minister for Mining Affairs, Ministry of Industry and Mineral Resources, told Argaam.  

The demand for iron is expected to increase to two and a half times the current production, he said on the sidelines of the Future Minerals Forum 2023. 

There are major projects valued at more than $12 billion to produce iron and provide iron ores in the Kingdom.  

He added that the Kingdom allocated SAR 120 billion only for mineral investments, excluding mining, in several projects in Ras Al Khair and other regions.  

Saudi Arabia has investments of SAR 120 billion in phosphate, which constitutes 25% of mineral resources.  

Almudaifer explained that the Phosphate 3 project, supported by the Shareek program in the past, will make the Kingdom the third largest producer of phosphate in the next ten years.  

Work is still ongoing on Phosphate 4 and 5 projects, making the Kingdom the second largest country producing phosphate fertilizers, he added.

Saudi Vision 2030 targets the mining sector to be the third pillar of the national industry in the future.

The Kingdom is currently working on vast projects with distinguished infrastructure at international standards.

He indicated that the North-South Railway (NSR), Wa'ad Al-Shamal Industrial City, and Port of Ras Al Khair have supplied the world with the fertilizers it needs, with the Kingdom contributing almost a quarter of the world’s phosphate fertilizers.

Almudaifer stated that the Kingdom is working on bauxite and aluminum to a great extent from the mine to car sheets. They will be used in electric vehicles (EVs), which will be produced locally before 2030.

Bauxite investments hit approximately SAR 40 billion in the Al Baitha mine.

Saudi Arabia’s target is to produce alumina oxide (Al2O3), followed by aluminum and sheets for packaging and cars, and aircraft sheets and the aircraft industry soon.

The Kingdom has currently opened Ad-Duwayhi mine, which is considered one of the largest gold mines in the Kingdom. Saudi Arabian Mining Co. (Maaden) announced the operation of Mansourah-Massarah Gold Project, the largest mine in the Middle East, as its productivity rose by about 400,000 ounces, aiming to reach one million ounces per year soon.

The Kingdom has only one copper mine, he pointed out, indicating that bidding had been made for four licenses to explore copper. There will be 40 licenses issued to explore copper, zinc, and base metals soon, as the Kingdom aspires to be the 10th largest copper and aluminum producing country.

Almudaifer said that the Ministry worked on the geological survey in a short time with great results, led by the Saudi Geological Survey (SGS) and with the assistance of all international surveying bodies.

The Kingdom attracted the expertise available in this field, as the survey was completed by approximately 40% in the Arabian Shield, he added.