Saudi Arabia seeks mining deals with Chinese, Indian and Canadian firms in industry push

Introduction

Saudi Arabia has recently signed significant investment deals in the metals and mining sector, marking a major push to diversify its economy and strengthen its position in global supply chains. The kingdom announced nine agreements worth over 35 billion riyals ($9.32 billion) with international firms, primarily from China and India, during the World Investment Conference in Riyadh.

Key Investments

Indian Investments
Vedanta

Indian oil-to-metals conglomerate, has agreed to invest $2 billion in copper projects within Saudi Arabia. The company plans to build:

A greenfield copper smelter and refinery with a capacity of 400,000 tonnes per annum

A copper rod project with a capacity of 300,000 tonnes per annum

These projects will be established in Ras Al Khair Industrial City, a major center for mining and mineral processing industries in the kingdom.

Chinese Investments
Zijin Group,

Chinese mining company, will invest between 5 billion and 6 billion riyals ($1.33 billion to $1.6 billion). Their investment includes:

A zinc smelter with a capacity of 100,000 tonnes per annum of zinc ingots

A lithium carbonate extraction facility to produce 60,000 tonnes per annum of battery-grade lithium carbonate

A copper refinery with an output of 200,000 tonnes per annum of copper cathodes

Other Notable Investments

Australia’s Hastings Technology Metals

They will invest 5.6 billion to 7.2 billion riyals in rare earth elements processing facilities.

Vancouver-based Platinum Group Metals

They are conducting studies with local firm Ajlan & Bros Mining to build a 1.9 billion riyal platinum group metals smelter and base metals refinery.

Strategic Importance

These investments align with Saudi Arabia’s Vision 2030 plan, which aims to diversify the economy and reduce reliance on fossil fuels. The kingdom’s growing mining industry is a crucial part of this strategy, with the government hoping to attract $100 billion in foreign investment annually by 2030.

Khalid Al Falih, Minister of Investment of Saudi Arabia, emphasized that these deals will help increase access to critical materials, advance domestic manufacturing, and reinforce Saudi participation in global supply chains.

Future Prospects

Saudi Arabia’s mining sector shows significant potential, with more than 5,300 mining sites valued at about $1.3 trillion. The kingdom is positioning itself as a leader in “green-shoring,” leveraging its good relations with many countries and abundant green energy resources.

Conclusion

As the global demand for critical metals continues to grow, particularly in the electric vehicle industry, Saudi Arabia’s strategic investments in mining and processing facilities are likely to play an increasingly important role in international supply chains.