Critical minerals market cannot be built on OPEC-like model: AlKhorayef

Bandar AlKhorayef, Minister of Industry and Mineral Resources

Building a more stable global market for critical minerals cannot be based on a model similar to that of OPEC, said Bandar AlKhorayef, Minister of Industry and Mineral Resources.

He explained that minerals differ fundamentally from oil due to the wide variety of mineral products and the distinct dynamics of their respective markets.

AlKhorayef made these remarks during his participation in the St. Petersburg International Economic Forum in Russia, according to Asharq Business.

He emphasized the importance of distinguishing between minerals and oil.

Oil is a single globally traded commodity whose challenges primarily revolve around the balance of supply and demand. Meanwhile, the minerals sector encompasses a myriad of products, each implying its own market dynamics.

The minister added that the challenges facing the mining sector extend beyond resource availability and production volumes.

They also involve technology, processing capabilities, infrastructure, financing, and human capital development, making international cooperation in the sector much broader than simply regulating a single commodity market.

AlKhorayef stated that geopolitical tensions have highlighted the need to establish platforms and initiatives for cooperation, noting that any new supply chain framework will require time and discipline to deliver results.

He also pointed out that Africa, the Middle East, and Central Asia account for 33% of global mining reserves, yet contribute only about 6% of global supply, reflecting a significant gap between resource availability and actual production.