Trillion-dollar ambition: Saudi Arabia accelerates metal mining plans to cut oil reliance

The kingdom has signed a slew of deals with Chinese, Indian and Australian companies amid growing interest in its massive mineral reserves

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Riyadh. Saudi Arabia is looking to become a major global mining and metals player. Photo: Shutterstock

Published: 5:00pm, 7 Dec 2024

Mining and metals giants from China, India and Australia are pumping billions of dollars of project investments into Saudi Arabia as the oil-rich kingdom seeks to accelerate its economic diversification and become a major industry player in Asia and Africa.

Riyadh is also actively acquiring strategic stakes in global mining firms to capitalise on the worldwide shift to renewable energy and electric vehicles, including a 10 per cent stake in Vale Base Metals bought for US$2.5 billion last year.

Through its state-owned mining company Ma’aden and overseas investment vehicle Manara Minerals, Saudi Arabia earlier this year signed memorandums of understanding with several mineral-rich African nations, including the Democratic Republic of Congo, Egypt, and Morocco. It has signed similar agreements with Russia and Turkey.

Saudi Arabia “is working to diversify its economy beyond the oil and gas sector and it also wants to attract foreign investment that would create new revenue streams for the government, and grow the economy by creating new jobs and developing new sectors”, said Laury Haytayan, Middle East and North Africa director of the Natural Resource Governance Institute, a UK-based NGO focused on sustainable and socially inclusive mining in developing countries.

People visit the China Pavilion at a UN convention to combat desertification in Riyadh on Wednesday. Saudi Arabia is working to diversify its economy beyond oil and gas. Photo: Xinhua

Ma’aden acquired a 9.9 per cent stake in Australian company Ivanhoe Electric as part of a deal struck between the two firms in May to establish a joint venture to mine copper, gold, silver and other metals in Saudi Arabia.