Mining sector faces challenges to secure critical minerals: Expert

The global mining sector is facing major challenges in securing critical minerals that are required for energy transition. 

Saudi Arabia has strong potential to become a global hub in this field, Peter Bryant, Board Chair of Clareo, told Argaam on the sidelines of the Future Minerals Forum.

The challenges encompass various technical, commercial, and social aspects, including technical challenges such as low-quality ores, increasing mining depths, high water and energy consumption in operations, and complexities in waste management.

He noted that commercial challenges include a lack of investments, emphasizing that the world requires $1 trillion in investments to meet the demand for metals by 2030, while current investments range only between $20 billion and $30 billion annually.

He stressed the importance of public-private sector collaboration to address geopolitical and financial challenges affecting mining investments, highlighting the role of governments in providing financial guarantees and investment incentives to attract capital.

Regarding copper shortages, he pointed out that the world will face a significant gap by 2035, with demand reaching 50 million tons annually compared to the current production of 25 million tons.

He explained that developing new mines takes up to 20 years, making regulatory reforms essential to accelerating mining operations.

He added that Saudi Arabia can play a pivotal role through its major mining region by enhancing regional cooperation to utilize resources more efficiently. The Kingdom's infrastructure and clean energy provide an integrated industrial platform that adds value to mineral resources.

Bryant stated that Saudi Arabia has an opportunity to accelerate industrial innovation in the mining sector and leverage its expertise in the oil and gas industry to support the transition toward sustainable mining. He predicted that 2025 will witness practical cooperation between the Kingdom and other countries in the region to develop joint mining projects.