Saudi Arabia Boasts $2.5 Trillion in Mineral Reserves, Aims for Rare Earths Dominance
Saudi Arabia is positioning itself as a key player in the global mineral market, boasting an impressive $2.5 trillion in mineral reserves. This strategy aligns with the nation’s broader goals of reducing oil dependency and increasing geopolitical influence.
Key Mineral Reserves
The kingdom’s mineral wealth includes a variety of resources:
- Gold
- Zinc
- Copper
- Lithium
- Rare earth elements: dysprosium, terbium, neodymium, and praseodymium
These minerals are critical for technologies like electric vehicles and renewable energy systems, underscoring their importance in modern industries.
Strategic Investments and Growth
Saudi Arabia’s commitment to its mining sector has seen a significant boost in investment. Between 2021 and 2025, the mining budget increased by 595% as noted by S&P Global. The government is actively issuing licenses to both domestic and international mining ventures to accelerate exploration.
Long-Term Vision
At the Future Minerals Forum held in Riyadh, state-owned mining company Maaden announced plans to invest $110 billion in metals and mining over the next decade. This initiative includes international partnerships and recruitment of industry talent, demonstrating a long-term commitment to building a robust mining industry.
Challenges Ahead
Despite these ambitious plans, the path to becoming a mineral powerhouse is fraught with challenges. The mining industry typically requires years of investment before yielding results. Processing facilities can take three to five years to build, and finding a market-ready end product can extend the timeline significantly.
Geopolitical Context
The global market for rare earths is currently dominated by China, which controls over 90% of refined rare earth output. As part of its Vision 2030 initiative, Saudi Arabia aims to change this landscape by diversifying its economy and establishing itself as a regional refining hub.
International Collaborations
Saudi Arabia’s efforts have not gone unnoticed by the United States. Notably, US company MP Materials, along with the Department of Defense, is partnering with Maaden to construct a new refinery in Saudi Arabia. This facility aims to reduce reliance on Chinese processing capabilities, aligning with US strategic interests.
Environmental Considerations
While Saudi Arabia’s ambitions in minerals are impressive, they raise questions about environmental impact. The nation has faced criticism for not fully committing to sustainability standards in mineral extraction.
Conclusion
Saudi Arabia’s push to dominate the mineral sector is not merely about immediate economic returns. This strategy aims to elevate the kingdom’s global standing and establish it as a pivotal player in an increasingly important industry. As developments unfold, the international community will be watching closely.
