Saudi expands its mining influence at landmark forum: The Future Minerals Forum kicked off in Riyadh last Tuesday and wrapped yesterday, delivering a deluge of updates from the Kingdom from upcoming bond issuances to new investment projects, mining tenders, and much more.

First up, a new investment vehicle: Saudi Arabia is developing a USD 100 bn mineral investment project, including USD 20 bn that is currently underway, Industry and Mineral Resources Vice Minister Khalid Al Mudaifer said at the forum on Wednesday, according to CNBC. The vice minister did not disclose further details on the project.

The investment is part of a “fast and furious” push to deepen the Kingdom’s mining footprint and position itself as a global mining hub, Saudi Energy Minister Abdulaziz bin Salman said at the forum. “Oil is no longer an energy security challenge – it’s going to be gas, electricity, predominantly minerals,” Saudi Energy Minister Abdulaziz bin Salman said, CNBC reported separately. As countries race to gain first access to critical minerals, higher emissions, metal costs, and energy prices will naturally ensue, bin Salman added.

MA’ADEN IS ON A ROLL-

Ma’aden is on the hunt for financing: Ma’aden is considering an international bond issuance this year to drum up financing for its USD 12 bn investment program, CEO Bob Wilt told Bloomberg. The mining giant is already in discussions with banks and will make a decision on proceeding “later this year.” Proceeds from the issuance will help ease burdens on the company’s balance sheet as Ma’aden deploys an average of USD 2.5 bn a year to grow its phosphates, aluminum and metals business over the next five years, Wilt added.

ALSO- Aramco and Ma’aden signed a non-binding heads of agreement to form a lithium extraction JV by 2027 to advance direct lithium extraction technologies, Aramco said in a statement. Aramco said it identified areas within its operations where lithium concentrations exceed 400 parts per mn. This story was also covered by Bloomberg.

IN CONTEXT- Global demand for lithium is projected to rise 7x by 2040 on the back of a growing appetite for EVs, according to the International Energy Association’s projections. While China dominates two-thirds of the lithium processing market, “Saudi Arabia is very well positioned in processing because of the mixture that we have, starting from energy competitiveness, great infrastructure in terms of industrial cities and ports,” Industry and Mineral Resources Minister Bandar Alkhorayef told the salmon-colored paper. However, Saudi Arabia has yet to establish a significant presence in lithium or battery raw materials, Benchmark Mineral Intelligence says.

The fix? Analysts suggest vertical integration — controlling the entire supply chain from extraction to sales — would help Saudi Arabia’s lithium ambitions to succeed.

REMEMBER- The Kingdom increased its estimate of unexploited mineral resources to USD 2.5tn, driven by discoveries of rare earth elements and metals such as lithium, copper, and gold. To accelerate critical minerals development, it has introduced a USD 182 mn incentive program for exploration.

MORE MINING NEWS FROM SAUDI-

#1- The Industry and Mineral Resources Ministry awarded exploration licenses for six sites in Riyadh and Makkah under its seventh exploration tender, according to state news agency SPA. The tender saw 11 firms submitting a total of 24 bids, the ministry said. The concessions are expected to carry copper, zinc, gold, silver, and lead deposits. The awardees have committed SAR 126 mn for exploration and pledged SAR 9 mn to support local communities through social programs.

The awardees:

  • Al Masane Al Kobra landed three licenses to explore concessions in North Jabal Al Khallah and South Jabal Al Khallah in Riyadh, and Jabal Al Daama in Makkah;
  • The Um Ajlan concession in Riyadh went to a consortium of ARTAR and Gold and Minerals Company ;
  • A consortium of the Arabian Gulf Mining Company and India’s Skylark secured a license for Wadi Al Laith in Riyadh;
  • Canada’s Power Nickel landed exploration rights for Jabal Baydan in the Hijaz Mountains.

REMEMBER– More licenses coming: Proposal applications for five exploration licenses in the Jabal Sayid and Al-Hajjar mineralized belts — containing copper, zinc, lead, gold, and silver — are currently open until 21 January 2025. Companies who qualify will be announced on 16 February 2025.

#2- KSA inks multiple bilateral mining + mineral MoUs, including with UK: The Saudi Industry and Mineral Resources Ministry signed six mining and critical minerals bilateral cooperation MoUs with Djibouti, Jordan, Austria, Zambia, and France, SPA reported on Tuesday. Details on the cooperation ventures — signed during the Future Minerals Forum (FMF) in Riyadh — were not disclosed.

We may know a little more about the UK plans: The UK was said to be gearing up for an agreement with the Saudi that aims at strengthening the island nation’s critical minerals supply chains, which are essential for its tech and clean energy sectors, Reuters reported on Tuesday, citing the British Government. The agreement was expected to be finalized this week during FMF, which concluded yesterday, but the UK government has yet to announce the signing.

The rationale: The UK is racing to secure long-term access to critical minerals like copper, lithium, and nickel — key materials for EVs, data centers, and other tech. Saudi Arabia, meanwhile, is looking to leverage its estimated USD 2.5 tn untapped mineral resources to establish itself as a global hub for critical minerals trade.

#3- PIF’s mining unit Ma’aden is gearing up to invest USD 1.3 bn in Brazil and open its first office in Sao Paulo, Brazilian Mining Minister Alexandre Silveira told Reuters. The investment is set to support geological mapping efforts in the country and to establish partnerships with Brazilian players to examine subsoil sustainably. No further details were provided on the investment plans.

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