From 1.300 billion to 2.500 billion. Saudi Arabia has reevaluated its projections of undiscovered mineral potential, almost doubling its value compared to the previous projection of 1.300 billion made in 2016. The country also highlighted the potential of a sector destined to contribute to the diversification of the economy of the world's leading oil exporter, reducing its dependence on fossil fuels.
The announcement regarding the revaluation came directly from Bandar Alkhorayef, Saudi Minister of Industry and Mineral Resources, during this week's Future Minerals Forum in Riyadh, an event that attracted delegations from "over 77 countries", including African countries rich in resources in which Saudi Arabia should make mineral acquisitions. The USA was also present with Geoffrey Pyatt, assistant secretary of state for energy resources.
Saudi Arabia and mineral resources: the reasons for the revaluation
“I am pleased to announce that our estimate of the kingdom's untapped mineral potential has increased from $1,3 trillion to $2,5 trillion, with an increase in 90%“Minister of Industry and Mineral Resources Bandar Alkhorayef said at a conference in Riyadh.
“This increase is due to new discoveries of rare earths, to the increase in volumes of phosphate, gold, zinc and copper and the revaluation of these minerals,” Alkhorayef explained, highlighting that the new projection is based on only 30% of current Arabian Shield exploration. “There is still a lot to discover,” she underlined.
Since well before historic agreement reached as part of Cop28, held last month in Dubai, Saudi Arabia has launched a program that aims to reduce its dependence on fossil fuels. The country is in fact the largest producer and exporter of crude oil in the world. Oil exports constitute 80-90% of government revenues, 48% of the nation's GDP and 85% of export earnings. One of the ways identified to break away from fossils is to focus, at least in part, on mining sector to attract foreign investments.
Energy Minister Prince Abdulaziz bin Salman told the conference that instead of being defined as an oil-producing country, “what we are working on is becoming an energy producing country for all energy sources."
Precisely for this reason, within the same conference, a program was also announcedincentives for exploration in collaboration with the Ministry of Investment with a budget of over 182 million dollars.
