ST. PETERSBURG: Saudi Arabia’s minister of industry and mineral resources affirmed that the Kingdom is seeking to play a central role in the mining and minerals sector comparable to its role in stabilizing global energy supplies.
Bandar Alkhorayef said this would be achieved through building international partnerships and developing an integrated system that supports sector growth and contributes to securing global mineral supplies.
This came during his participation in a panel discussion titled “Rare and Strategic Earth Elements: Sovereignty and International Cooperation in Rare Earth Elements and Critical Minerals,” held on the sidelines of the St. Petersburg International Economic Forum in Russia, with the participation of ministers, decision-makers, and mining sector leaders from around the world.
Alkhorayef explained that the Kingdom launched the International Mining Conference to serve as a global platform bringing together governments, mining companies, financial institutions, and academic and technical bodies, with the aim of enhancing international cooperation and developing the partnerships needed to address the challenges facing the sector.
He noted that the conference has cemented its position as one of the most prominent specialized global platforms, with its latest edition seeing the participation of 100 countries alongside major mining companies, financial institutions, and academic and technical bodies.
The minister highlighted that the mining sector represents one of the main pillars for achieving the targets of Vision 2030 and diversifying the national economy.
He noted that the Kingdom has intensified geological survey and exploration activities in recent years, contributing to raising estimates of mineral wealth to approximately $2.5 trillion, an increase of roughly 90 percent compared to estimates announced in 2018, reflecting the scale of promising opportunities the sector holds.
Alkhorayef pointed out that the Kingdom views mining as the third pillar of national industries, given its potential to develop manufacturing industries and value-added chains, support the growth of the non-oil economy, and contribute to enhancing global food security through phosphate fertilizer-related industries.
He noted that the Kingdom’s non-oil exports reached record levels last year at approximately SR620 billion ($165.14 billion), with mining products, fertilizers, and aluminum forming a significant portion of those exports.
The minister stressed that the future of the mining sector depends on international cooperation and value chain integration. He clarified that developing the sector is not solely tied to the availability of mineral resources.
According to the government official, it also requires building an integrated ecosystem encompassing infrastructure, advanced technologies, financing, and human capabilities, all of which contribute to enhancing the sustainability of global supply chains.
Alkhorayef noted that the regions of Africa, the Middle East, and Central Asia hold approximately 33 percent of global mineral reserves, yet contribute only around 6 percent of global supply.
This gap, he said, underscores the importance of strengthening international cooperation and investing in infrastructure and value chain development. Doing so would enable these regions to leverage their natural resources and contribute more significantly to meeting rising global demand for minerals.
He also highlighted the importance of the Saudi-Russian partnership in the mining and minerals sector, praising the level of cooperation between the two countries.
He affirmed the Kingdom’s aspiration to expand cooperation and joint investment in rare and critical minerals, in ways that serve the mutual interests of both countries and contribute to building more resilient and sustainable supply chains globally.
Bandar Alkhorayef held a bilateral meeting with Russian Minister of Economic Development Maxim Reshetnikov. SPA
On the sidelines of the forum, Alkhorayef held a bilateral meeting with Russian Minister of Economic Development Maxim Reshetnikov, to discuss ways of strengthening economic partnerships between the two countries and growing joint investments in the industry and mining sectors.
The meeting affirmed the depth of the historic ties between the Kingdom and Russia, as both countries celebrate 100 years of diplomatic relations, a milestone that serves as an important foundation for strengthening economic ties and growing bilateral trade, which currently exceeds $3.28 billion.
Both sides also discussed ways to empower the private sector in both countries to build effective investment partnerships and capitalize on mutual opportunities in the industry and mining sectors, with a view to elevating economic cooperation to broader horizons commensurate with the significant potential and available opportunities both countries possess.
