This year’s Investing in African Mining Indaba was an important opportunity for the Kingdom of Saudi Arabia’s Ministry of Industry and Mineral Resources (MIM) to share its mining transformation experience, says Saudi Arabia’s Mining Affairs Vice Minister in the MIM Khalid Al-Mudaifer.

“This transformation story is to the benefit of African countries looking to grow in this industry, as it can help spur conversations with companies and countries about developing a ‘futureproof’ mining sector that can meet the world’s mineral needs for decades,” he says.

In recognition of Saudi Arabia’s vast geological resources, and in line with national diversification and economic growth objectives, the Kingdom has, over the past several years, been dedicated to increasing financial and human resources to rapidly transform Saudi Arabia’s mining sector.

Hence the MIM, having implemented its new mining strategy to leverage Saudi Arabia’s rich geological resources, participated at the Indaba as part of its efforts to collaborate with other nations and expand sustainable mining efforts globally.

Focusing on developing sustainable integrated value chains – enabled by an investment ecosystem based on simple and transparent licensing processes and sustainability – the MIM rolled out more than 40 initiatives designed to improve the overall climate for mining and attract the investment required to make this new industry successful.

Al-Mudaifer says extensive benchmarking of the world’s leading mining regions was critical to this process, as it resulted in the Saudi Arabian Mining Investment Law, which delivers a clear and predictable regulatory environment, as well as a transparent digital process for licence applications and approvals.

“We have made great progress creating one of the most favourable mining investment climates in the world, resulting in a 27% year-on-year growth in mining revenues in 2021, totalling more than $8-billion in foreign direct investment attracted by the Ministry.”

Moreover, a recent survey reveals the enthusiasm expressed by mining industry investors regarding the opportunities in Saudi Arabia, with nearly 80% of those surveyed considering investing in the sector. This relative optimism, Al-Mudaifer says, speaks to the success of the Saudi Arabian mining sector transformation.

One of the key lessons learned from the transformation was that transforming the country’s mining ecosystem required “tremendous efforts from a multitude of government agencies and a very honest assessment of how we could best improve the ease of doing business in Saudi Arabia”, he adds.

Clean Energy Driving Demand, Investment and Development Potential

The MIM also provided insights at the Indaba regarding the global potential for mining to impact on green energy development, and its efforts to foster partnerships among all potential mining jurisdictions across Africa, the Middle East and Central Asia.

Al-Mudaifer says a green future requires new, stable sources for key minerals. He adds that mineral demand for clean energy technologies, led by electric vehicles (EVs), is expected to increase fourfold by 2040.

Thus, the MIM is also focusing on minerals required for the energy transition and EV evolution, and on leveraging the know-how and experiences of well-developed jurisdictions.

Moreover, he says net-zero metals consumption will outstrip demand by two-thirds by 2050, including graphite, cobalt, vanadium and nickel. Current copper, lithium and platinum supplies are also inadequate to satisfy future needs, with a 30% to 40% gap compared with demand.

Africa, together with the region that stretches through the Middle East and into Central Asia, holds some of the largest reserves of key commodities on earth. This shared geological endowment includes many of the minerals and metals needed to help the region meet the global net-zero transition’s goals.

Through its collaboration with Mining Indaba and the wider region, Al-Mudaifer says the MIM wants to meet future demand for the minerals that will “power the future”.

“To meet this demand, we are focusing on countries that have a lot of deposits that are critical to our green future – countries, such as the Democratic Republic of Congo, which has a lot of cobalt, and Zimbabwe, which has large deposits of lithium. We want to partner with such nations and ensure that we explore minerals in a responsible and sustainable way to serve the global clean energy transition.”

He says increasing mining efforts to meet demand must be done sustainably by focusing on environmental, social and corporate governance.

“We value our relationship with Mining Indaba, and we encourage attendees to continue the conversations we had at this year’s Future Minerals Forum, in Saudi Arabia’s capital city of Riyadh, to address supply chain challenges as the world’s need for minerals is increasing, which demands collective action,” Al-Mudaifer concludes.