Saudi Arabia Announces Major Mining Expansion Plans
Saudi Arabia is gearing up for a significant expansion of its mining sector. The Kingdom will launch competitive bidding rounds in 2026 and 2027 to explore large-scale opportunities. This move aims to tap into the country's vast untapped mineral wealth, estimated at around $2.5 trillion.
The goal is clear. Saudi Arabia wants to position itself as a key global supplier of critical minerals. These minerals are essential for the energy transition and emerging technologies worldwide.
Official Announcement at Riyadh Conference
Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef made this announcement. He spoke at the International Mining Conference in Riyadh. The event attracted participants from across the globe, highlighting international interest in Saudi mining prospects.
The minister outlined the Kingdom's ambitious plans. He emphasized that Saudi Arabia is moving beyond simple extraction. The focus now includes creating broader economic value through mining activities.
Progress in Exploration Licenses
Saudi Arabia has already made substantial progress in awarding exploration licenses. To date, these licenses cover more than 33,000 square kilometres of territory. The ninth bidding round alone proved particularly successful.
This round allocated 172 mining sites to 24 different companies and consortia. Both local and international firms received these valuable exploration rights.
The Arabian Shield region has undergone complete surveying. Both geophysical and geochemical assessments provide comprehensive data for future development. This thorough preparation ensures informed decision-making for upcoming projects.
Sharp Increase in Exploration Investment
Investment in mineral exploration has risen dramatically in recent years. In 2020, exploration investment stood at just SAR 1 million. By 2024, this figure jumped to SAR 1.052 billion, equivalent to approximately $280 million.
This represents a more than fivefold increase in exploration funding. Such substantial investment demonstrates Saudi Arabia's serious commitment to developing its mining sector.
Mining's Role in Economic Growth
Minister Al-Khorayef stressed that mining contributes to broader economic development. The sector generates employment opportunities across various skill levels. It supports Saudi Arabia's ongoing economic diversification efforts.
Mining is evolving into a significant contributor to sustainable growth. The Kingdom aims to develop the sector strategically rather than just extracting resources.
Recent achievements from the fifth International Ministerial Meeting on Mining Affairs include:
- Adoption of the Future Minerals Framework
- Progress in establishing centres of excellence
- Development of responsible mining standards
- Alignment with the World Bank's new mining sector strategy
These steps ensure mining activities remain sustainable. They also help integrate Saudi mining operations with global supply chains effectively.
International Collaboration Highlights
The International Mining Conference has become a major platform for global cooperation. It facilitates investment discussions and policy development among participating nations.
This year's event featured impressive participation numbers:
- Representatives from 100 different countries
- 59 international organizations
- Approximately 400 speakers including ministers, industry executives, academics, and financial institution representatives
Discussions focused on advancing mining practices globally. Participants emphasized promoting sustainability throughout the mining value chain. Strengthening supply chains for critical minerals received particular attention.
Minister Al-Khorayef highlighted the importance of these minerals. He noted their crucial role in emerging technologies like artificial intelligence. They also support the global energy transition away from fossil fuels.
Alignment with Saudi Vision 2030
All mining sector developments support the goals of Saudi Vision 2030. This comprehensive plan guides the Kingdom's economic diversification and resilience building.
By leveraging its mineral resources strategically, Saudi Arabia seeks multiple benefits:
- Enhanced participation in global supply chains
- Increased foreign investment attraction
- Sustainable sector growth that benefits future generations
Minister Al-Khorayef noted these efforts are transforming Saudi mining. The sector is becoming strategic for value creation rather than just resource extraction. It fosters international cooperation and supports long-term economic development.
The Kingdom's mining expansion represents a calculated move. Saudi Arabia recognizes the growing global demand for critical minerals. By developing its substantial resources, the country positions itself as a reliable supplier for the coming decades.
