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Khalid Al-Mudaifer, Vice Minister of Industry and Mineral Resources for Mining Affairs
Khalid Al-Mudaifer, Vice Minister of Industry and Mineral Resources for Mining Affairs, said the ministry is implementing the “last-mile” initiative to enable infrastructure in remote mining areas.
He told Argaam that most mineral resources are located in distant sites lacking basic services such as electricity and water.
Al-Mudaifer added that the initiative includes transporting treated water from Madinah to mining projects in the Jabal Sayid area—the Kingdom’s largest copper mine—in cooperation with the ministries of environment, water, and energy.
The initiative also involves connecting projects to the high-voltage electricity grid to meet the needs of factories and concentration plants.
He noted that this step helps accelerate mining development and attract investments by reducing costs and providing the necessary infrastructure to commence operations.
Key financing challenges in the mining sector
Al-Mudaifer explained that one of the main challenges facing investors in the mining sector is financing, particularly during the post-exploration phase, which requires substantial capital injections to build mines.
He said the cost of developing a new mine starts at $100 million (approximately SAR 375 million) and may reach up to $2 billion (SAR 7.5 billion), depending on the size of the resource and the type of mineral, placing a significant financing burden on emerging companies in the sector.
The government is supporting this area through various financing programs, including the Saudi Industrial Development Fund, in addition to new initiatives such as the Funding Gate in cooperation with the Bank of Montreal (BMO), which aims to connect investors with local and international funding sources.
Al-Mudaifer added that challenges also include infrastructure constraints, with the government focusing on addressing the final segment of infrastructure in remote areas, alongside financing support.
Estimating the Kingdom’s recoverable mineral reserves
Al-Mudaifer said recent economic estimates indicate that the value of the Kingdom’s recoverable mineral reserves is estimated at around SAR 9 trillion, based on peer-reviewed studies conducted in cooperation with specialized international entities.
He added that these estimates do not include the results of the Saudi Geological Survey, which was recently completed and is expected to reveal additional mining opportunities in previously unexplored areas.
Spending on exploration has increased by more than fivefold in recent years, while the number of licenses has doubled to more than 1,000. Exploration areas have also expanded from 35,000 to 75,000 square kilometers.
Updates on the Mining Exchange
Al-Mudaifer confirmed that work is underway to develop a mining exchange in the Kingdom under the Financial Sector Development Program, noting that the aim is to establish a specialized market aligned with the aspirations of local and global investors.
He explained that the planned exchange seeks to enhance transparency and provide a platform for financing mining companies, whether through listings or private placements. Significant focus is being placed on studying all regulatory and financial tools required to ensure its success and sustainability.
The launch of the exchange requires full readiness in terms of regulations, investors, and projects, which the relevant authorities are working on to ensure the establishment of a mining exchange that meets global standards, Al-Mudaifer noted
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