Saudi Arabia secures $9bn to unlock mining potential  

Unsplash/Artyom Korshunov

Saudi Arabia has announced investment agreements with global mining companies worth SAR35 billion ($9.32 billion), as the country seeks to capitalise on its estimated $1.3 trillion worth of untapped mineral resources.

India-based Vedanta will build SAR7.5 billion copper facilities at Ras Al Khair Industrial City, including a greenfield smelter and refinery with a capacity of 400,000 metric tonnes per annum (mtpa) and a 300,000 mtpa copper rod plant.

Currently, Saudi Arabia imports much of its copper, with annual demand at 365,000 mtpa, which is expected to more than double by 2035.

“Our projects will enhance the kingdom’s self-reliance in the copper supply chain,” said Chris Griffith, CEO, base metals, Vedanta.

Vedanta will commence operations with a 125,000 mtpa copper rod mill with a $30 million investment. Construction is expected to start shortly, with commercial production slated for the end of 2025 or early 2026.

Chinese mining giant Zijin will invest SAR5-6 billion in a multi-phase project, focussing on building a zinc smelter with a capacity for 100,000 mtpa of zinc ingots and 200,000 mtpa of sulphuric acid in the first phase, according to Reuters.

The second phase includes a lithium carbonate extraction facility to produce 60,000 mtpa of battery-grade lithium carbonate, while the final phase will have a copper refinery, producing 200,000 mtpa of copper cathodes and 50,000 mtpa of electrolytic copper foil.

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Additionally, Australia’s Hastings Technology Metals will invest SAR5.6-7.2 billion to establish rare earth element processing facilities, the news agency reported.

This project will be built in phases and include a hydrometallurgical processing plant, a solvent extraction separation facility, a rare earth elements downstream processing facility and sourcing rare earth elements from mines in Saudi Arabia.

Canada’s Platinum Group Metals and Saudi-based Ajlan & Bros Mining are conducting feasibility studies for a SAR1.9 billion smelter and base metals refinery. Feedstock for the facility will be sourced from South Africa’s Waterberg mine, which the Canadian company is developing.

Last week, Saudi Arabian Mining Company (Maaden) said it was offering upwards of 52 investment opportunities worth SAR4 billion to boost private sector participation.