Mining investments to grow sixfold by 2040: Industry Ministry Official

Turki Al-Babtain, Deputy Minister for Mining Development at Ministry of Industry and Mineral Resources

Investments in Saudi Arabia’s mining sector reached nearly SAR 120 billion over the past five years, Turki Al-Babtain, Deputy Minister for Mining Development at the Ministry of Industry and Mineral Resources, told Argaam.

These investments covered all stages of the value chain, including mine production, intermediate industries, and processing industries, with a focus on sectors such as phosphate, iron, and aluminium, Al-Babtain said on the sidelines of the Future Minerals Forum.

Mining investments are likely to increase by around five to six times by 2040, in line with the National Mining Strategy targets, Al-Babtain added, noting how this reflected the sector’s significant potential and promising growth opportunities for local and international investors.

Estimates for the value of Saudi Arabia’s mineral wealth rose to around SAR 9.4 trillion from SAR 5.4 trillion, following geological surveys, studies, and exploration work carried out over the past period.

Al-Babtain said the Kingdom had diverse resources, including phosphate, gold, copper, and critical minerals.

He noted that the value of rare earth element resources exceeded SAR 375 billion, mainly concentrated in heavy rare earth elements used in magnet manufacturing.

He said this value would likely double after full development of the value chain from processing, production to semi-finished products.

Key factors supporting Saudi Arabia’s attractiveness in downstream mining industries included development of the legislative, regulatory environment, launch of the Mining Investment Law, availability of geological data, infrastructure, geographic location, and energy from various sources.