Saudi Arabia is looking to become a giant in mineral exploration. To cement its resolve, the kingdom announced a $100 billion investment in mining on Wednesday. The new development became news after the kingdom announced multiple mineral investment projects earlier this week. Khalid al-Mudaifer, the kingdom’s Vice Minister of Mining Affairs, revealed some of these investment plans at an annual forum in Riyadh.
The vice minister’s hints suggest that Saudi Arabia already has concrete plans to expand its mining investment. Lithium is the most unexploited mineral resource to be prioritized by the Saudi Ministry of Mining Affairs. The new mining investment will cover the exploration of rare earth elements and highly economical minerals like nickel, phosphate, zinc, gold, and copper.
The official estimation of the worth of Saudi Arabia’s mineral wealth stood at $1.3 trillion in 2023. However, the kingdom’s Ministry of Industry and Mineral Resources upped this figure to $2.5 trillion early last year. The ministry justified this adjustment by announcing the discovery of the previously listed minerals.
ALSO READ: Saudi Arabia’s Spending Patterns Reveal a Clear Shift in Economic Strategy
The new discoveries might not have been possible without the Saudi government’s incentive scheme, which provided $182 million in incentives for mineral exploration and resource development studies and initiatives.
The incentive program started in January 2024, and by December, a local start-up, Lithium Infinity, had discovered and successfully extracted lithium. The start-up developed an innovative mining technology at the King Abdullah University for Science and Technology (KAUST). The extracted lithium was isolated from brine runoffs close to Saudi oil fields.
Saudi Arabia is doing everything it can to diversify its wealth and reduce its reliance on fossil fuels. The kingdom’s oil giant, Aramco, and its mining company, Ma’aden, will collaborate with KAUST to commercialize lithium extraction. The Saudi minister and other officials are confident that the kingdom’s mineral exploration efforts will drive job creation and economic growth.
Saudi Arabia aims to commercially produce lithium by 2027. In the meantime, it is funding infrastructure and developing resources. Although it has discovered lithium and other rare earth minerals, it is still prospecting for other minerals. In addition, Saudi Arabia is striving to make local sustainable mining a profitable venture.
For example, Lithium Infinity’s newly developed mining technology must be refined further. Obviously, Saudi Arabia’s mining ministry wants minimal environmental impact from these for-profit ventures and partnerships. Sustainable mining will boost job creation, economic growth, and infrastructure development within the kingdom. In addition, if it gets its technology right, Saudi Arabia may become the top future destination for lithium refining.
ALSO READ: Tesla Electric Semi Truck Battery Ignites in Crash, Releasing Toxic Fumes in California
However, the Saudi minister for mining and infrastructure funding providers advocates mining technologies that cause minimal environmental damage. Once Saudi Arabia enters the market, global market trends and lithium consumption will likely swerve.
It doesn’t seem like the Saudis are trying to keep up with global market trends in the rare mineral industry. Environmental impact aside, the kingdom and its visionary leaders are out to get concrete results in sustainable mining in record time. There’s no better explanation for the $100 billion investment in mining.