Introduction
In a significant move to diversify its economy beyond crude oil, Saudi Arabia has uncovered vast mineral resources that could reshape its financial landscape. The Kingdom, known for its immense oil wealth, is now focusing on mining as a new pillar of economic growth. With an estimated $1.3 trillion in untapped mineral wealth, Saudi Arabia’s latest discoveries include copper, zinc, gold, silver, and rare earth elements. This development aligns with the Kingdom’s Vision 2030, aiming to reduce reliance on oil revenues and establish a sustainable, diversified economy.
Unveiling the Kingdom’s Mineral Potential
Saudi Arabia’s Ministry of Industry and Mineral Resources recently announced the opening of five new mineral exploration licenses. These licenses span approximately 4,788 square kilometers of the Arabian Shield, a geologically rich area that holds significant deposits of copper, zinc, lead, gold, and silver. The government’s initiative is a part of a broader strategy to boost the mining sector’s contribution to the national economy. By 2030, Saudi Arabia aims to triple the sector’s GDP contribution to $64 billion and create over 200,000 direct and indirect jobs.
Bandar Alkhorayef, the Minister of Industry and Mineral Resources, emphasized the sector’s rapid growth, describing Saudi Arabia’s mining industry as the fastest-growing globally. The Kingdom is also promoting exploration opportunities across 5,000 square kilometers of promising mineralized belts in 2025. The Exploration Enablement Program, launched in 2024, has already funded multiple companies, reflecting a strong commitment to fostering a robust and competitive mining sector.
The Strategic Importance of Minerals
The strategic importance of these minerals cannot be overstated. Copper, for example, is essential for electrical infrastructure and renewable energy systems. Meanwhile, rare earth elements are critical for manufacturing smartphones, electric vehicles, and components used in artificial intelligence and defense systems. By harnessing its mineral resources, Saudi Arabia aims to become a global supplier of these critical materials, reducing its reliance on imports and enhancing its geopolitical leverage.
In addition to copper and gold, Saudi Arabia’s rich deposits of phosphates are being explored. Phosphates are a key component of fertilizers, and leveraging these resources could help the Kingdom play a significant role in global food security. The Saudi Arabian Mining Company (Ma’aden) is already one of the world’s largest phosphate producers, and further development of these resources could see it dominate the global market.
Strategic Partnerships and Investments
Saudi Arabia’s ambition to expand its mining sector has attracted significant international interest. In early 2025, the United Kingdom entered into a minerals cooperation partnership with Saudi Arabia. This agreement is aimed at securing essential minerals such as copper, lithium, and nickel, which are crucial for manufacturing various advanced technologies. The partnership is expected to bolster supply chains, generate business opportunities, and attract further investments into both countries.
Moreover, Saudi Arabia has secured investment agreements worth $9.32 billion with global mining companies. One of the most notable investments is from India-based Vedanta, which plans to build copper facilities at Ras Al Khair Industrial City. This includes a greenfield smelter and refinery with a capacity of 400,000 metric tonnes per annum and a 300,000 metric tonnes per annum copper rod plant. Currently, Saudi Arabia imports much of its copper to meet its annual demand of 365,000 metric tonnes, which is projected to more than double by 2035. Vedanta’s projects aim to enhance the Kingdom’s self-reliance in the copper supply chain, creating thousands of jobs and boosting local manufacturing capabilities.
Lithium Exploration: A New Frontier
Beyond traditional minerals, Saudi Arabia is venturing into lithium extraction, a critical component for electric vehicle batteries and renewable energy storage systems. In collaboration with King Abdullah University for Science and Technology (KAUST), Saudi Aramco is leading a pilot project to extract lithium from high-concentration deposits using direct lithium extraction (DLE) technologies. While still in the pilot phase, this project holds immense potential, with commercial production expected by 2027.
The shift towards lithium and other essential minerals reflects Saudi Arabia’s strategic vision of becoming a key player in the global energy transition. As the demand for electric vehicles and renewable energy systems grows, the Kingdom’s ability to supply lithium and other critical minerals could significantly enhance its economic resilience.
Global Collaborations and Future Prospects
Saudi Arabia’s proactive approach to expanding its mining sector has also attracted partnerships with global mining giants. Australia’s Hastings Technology Metals plans to invest billions to establish rare earth element processing facilities in the Kingdom. This project will include a hydrometallurgical processing plant, a solvent extraction separation facility, and a rare earth elements downstream processing facility. The feedstock for the facility will be sourced from local mines, further integrating Saudi Arabia into the global rare earth supply chain.
In another significant move, Saudi Arabia’s Public Investment Fund (PIF) is in talks to acquire a minority stake in copper mines in Zambia. This acquisition is part of a broader strategy to secure access to essential minerals needed for industrialization and technological advancement. Such investments underline Saudi Arabia’s commitment to becoming a global leader in the mining sector.
Environmental and Economic Impact
While the expansion of the mining sector promises significant economic benefits, it also raises environmental concerns. Mining activities, if not managed responsibly, can lead to environmental degradation, including deforestation, soil erosion, and water contamination. Recognizing this, Saudi Arabia has introduced stringent environmental regulations and is investing in sustainable mining technologies. These efforts are aimed at minimizing the ecological footprint of mining activities while maximizing economic returns.
Economically, the growth of the mining sector is expected to create a ripple effect across various industries. From logistics and infrastructure development to research and innovation, the mining boom is poised to generate a wide array of business opportunities. Furthermore, by reducing its reliance on oil exports, Saudi Arabia can stabilize its economy against volatile oil prices and ensure long-term economic sustainability.
Conclusion
Saudi Arabia’s recent discoveries of vast mineral resources represent a significant milestone in its journey to economic diversification. By strategically investing in the mining sector and forging international partnerships, the Kingdom is well-positioned to become a global leader in mineral production. The successful execution of its mining strategy could not only transform Saudi Arabia’s economy but also significantly impact the global supply chain of critical minerals.
As the Kingdom advances its Vision 2030 goals, the world will be watching closely to see how it balances economic growth with environmental sustainability. For now, one thing is clear: Saudi Arabia’s wealth is no longer just about oil—it’s about a new era of mineral riches that could redefine its future.
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