Mining Sector In Saudi Arabia
Saudi Arabia has an estimated $1.3 trillion in untapped mineral resources, making it one of the world's most promising mining regions.
The Kingdom's Arabian Shield covers 600,000 square kilometers and is rich in valuable metals, industrial minerals, and rare earth elements.
By 2030, the mining sector is expected to grow its GDP contribution from $17 billion to $64 billion. This growth will create over 200,000 jobs and attract more than $32 billion in foreign investment.
Saudi’s Mining Market Highlights
- 5.9 million tonnes of rare earth elements
- $1.3 trillion untapped mineral wealth
- $64 billion GDP by 2030
- $32 billion in foreign direct investment
Breaking New Ground: The Sector’s Most Recent Milestones
Global demand for minerals is soaring, and Saudi Arabia's geographical location between three continents perfectly positions it to serve international markets. Therefore, the mining industry in Saudi Arabia is rapidly evolving, with new discoveries and investments making headlines in Saudi Arabia's mining news.
The Kingdom’s discovery of 5.9 million tonnes of rare earth elements in 2023 caught the world’s attention and positioned it among the world's largest holders of rare earth reserves, crucial for renewable energy and electric vehicle production.
The Mansourah-Massarah gold mine unlocked even more opportunities within the sector. This $880 million investment is now the Kingdom's largest gold operation. The facility employs advanced processing technology and maintains strict environmental standards, setting a new benchmark for gold companies operating in the region.
Still, Ma'aden, the national mining champion, continues to expand globally. Their $126.5 million partnership with Ivanhoe Electric brings state-of-the-art exploration technology to the Kingdom. The collaboration will accelerate mineral discovery as it uses artificial intelligence and advanced geophysical systems.
With Saudi’s Strong Government Support, the Sector Will Continue To Expand
The Saudi government's support for mining is comprehensive and decisive.
The Mining Investment Law
The Mining Investment Law of 2020 invigorated the sector. It streamlined licensing, reducing processing time to just 65 days. The law protects investor rights and ensures transparent operations.
The National Mining Strategy
The National Mining Strategy backs the sector with $182 billion in support. This investment develops specialized mining cities, transportation networks, and power infrastructure. The strategy focuses on sustainable development and local value creation.
The Saudi Industrial Development Fund
The Saudi Industrial Development Fund provides crucial financial backing. Mining projects can access loans covering up to 75% of project costs. These loans offer competitive rates and generous grace periods, enabling rapid project development.
Unlocking New Markets While Maintaining Sustainability Standards
Environmental protection stands at the core of mining development. The government mandates strict environmental impact assessments with all new projects. Every beneficiary of a mining license must incorporate sustainable practices and renewable energy solutions that align with the country’s commitment to environmental protection.
The government's renewable energy program supports mining operations by investing in new solar and wind projects that provide clean power to mining sites. This initiative reduces operational costs and environmental impact, making Saudi mining more competitive globally.
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