Saudi Arabia 'fast emerging as mining investment hub'
RIYADH, September 4, 2021
Saudi Arabia is fast emerging as a mining investment hub thanks to its geology, industry ecosystem and sustainability, said a top government official.
"Saudi Arabia is very much open for business, and we have taken many transformational steps to make investing in mining more attractive than ever before," remarked Khalid Al Mudaifer, the Vice Minister of Mining Affairs for the Saudi Ministry of Industry and Mineral Resources.
He stated this in an interview on the sidelines of Mines and Money Online Connect event this week where he shared with a global audience of investors the reasons why Saudi Arabia is rapidly emerging as a major mining destination.
He highlighted three primary attractions for investors: Geology, Mining Ecosystem and Sustainability.
According to him, the Arabian Shield is estimated to contain $1.3 trillion worth of potential mineral value, across numerous commodities, including gold, copper, phosphate, iron ore and rare earth minerals, many of which are critical to the technologies that will drive a sustainable future, and which are in high demand.
"Plus, because of what investors have told us are critical success factors, we have a new national mind-set, deeper understanding of the complexities of mining and a greater focus on stability and predictability," stated Al Mudaifer.
"Combined with a rich and diverse geological footprint, a transformed mining sector and a sharp focus on sustainability, we can make a compelling case that Saudi Arabia is a mining country in the making," he added.
Saudi Vision 2030 singled out mining to grow to become the third pillar of the country's industrial growth, which led to the development of a comprehensive Mining and Mining Industries Development Strategy, which has identified nearly 40 initiatives, most of which already are up and running.
The kingdom's legal and regulatory framework for mining is being transformed and is now designed to ensure efficient and transparent licensing; simplify doing business; and support a dynamic, sustainable mining industry.
Mining Ecosystem
Based on global best practice, a completely revised Mining Investment Law was issued late last year, and now supports a clear and transparent process for license applications and approvals
*The new "Ta-adin" web-based platform offers a single point of access for mining license applications, issuance and information
*New incentives have been implemented, including the provision of co-funding up to 75 percent of investment, a five-year royalty holiday for miners, discounts on royalties for local downstream production and support for Saudization costs
*The kingdom already has attracted significant amounts of domestic and international investment in mining commodities like gold, phosphate and aluminum.
According to Al Mudaifer, the recently launched National Geological Database provides online access to 80 years' worth of national records of geological, geophysical and geochemical information, including thousands of detailed reports on mining targets and prospects.
Also recently announced, a major Regional Geological Survey Program is now under way and will conduct geophysical and geochemical surveys and create detailed mapping of more than 700,000 sq km of the Arabian Shield.
To meet the Paris Agreement goals on climate, the global supply of copper and rare earth minerals will need to increase by 40 per cent, while nickel and cobalt needs will go up by 60 per cent to 70 per cent, and lithium requirements will expand by 90 percent. All of those pivotal elements feature in Saudi Arabia's rich geology.
Al Mudaifer announced details of the inaugural Future Minerals Summit (FMS), the first-ever event to offer a 'one-stop-shop' for investors, miners and other industry stakeholders interested in learning more about the mining potential of the Middle East, Central Asia, and North and East Africa, to be held next year.
Planned for January 11 to 13, 2022, in Riyadh, FMS will welcome attendees from around the world, including governments, investors, and mining majors and corporates.
The summit programme is being built around four pillars:
*Defining a New Mining Hub – Showcasing opportunities across the Middle East, Central Asia, and North and East Africa
*Lands of Opportunity – Outlining partnership opportunities across integrated value chains
*Reimagining Mining – Shining a spotlight on innovations that will support mining in the future
*Mining's Contribution to Society – Highlighting the industry's vital role in producing the inputs needed to create a circular carbon future, as well as attracting the workforce of the future
In addition to the Ministry of Industry and Mineral Resources, FMS has been endorsed by the Ministry of Investment, Public Investment Fund and the Ministry of Foreign Affairs.-TradeArabia News Service
