Saudi Minister of Industry and Mineral Resources, Bandar Al-Khorayef, recently visited major mining companies and specialized mining technology centers in Santiago, Chile, to discuss joint investment opportunities in the production and processing of minerals such as lithium, copper, and iron. One of the key meetings was with Codelco CEO Ruben Alvarado, where they explored investment opportunities in metal production, focusing on lithium and copper. Codelco, founded in 1976, is a global leader in copper exploration, production, and sales, with a significant presence in key markets worldwide. Saudi Arabia also has a partnership with Codelco through Almar Water Solutions.
During his visit, Al-Khorayef met with leaders of other major Chilean mining companies, including Antofagasta, SQM, and Quinenco, to review current investment opportunities in mineral exploration in Saudi Arabia. He also discussed the exploration incentives program and belt licenses. Al-Khorayef extended an invitation to Chilean mining companies to participate in the International Mining Conference to be held in Riyadh in January. Additionally, he engaged with officials from the Advanced Mining Technology Center and the Mine Control Center of AngloAmerican to explore the use of their modern technologies to improve mining operations and raise operational efficiency while meeting global environmental standards.
The primary focus of the Minister of Industry’s tour, which also included visits to Brazil and Chile, was investment opportunities in the Saudi mining sector. Over the past years, Saudi Arabia has implemented various measures to enhance the investment environment in the sector, including amending the mining investment system and offering incentives such as joint financing for capital expenditures, tax exemptions, and direct foreign ownership. In April 2024, the Ministry of Industry announced the Exploration Enabling Program, which aims to reduce the risks associated with exploration investments by allocating $182 million.
Saudi Arabia has made significant progress in mineral exploration programs led by the Saudi Geological Survey, including geological survey and mapping projects worth around SR1 billion. The country has also accelerated the process of granting licenses to local and international investors, in addition to launching global public auctions to grant licenses in the mining sector. The establishment of the National Minerals Program aims to enhance the quality and efficiency of mineral supply chains to support local industries and major projects with an investment of SR120 billion in basic and strategic mineral industries.
Furthermore, Saudi Arabia has announced the discovery of the first mineralized belts in the country, including exploration licenses in Jabal Sayyad belt in Madinah and Al-Hajjar site in Asir region. These belts are rich in base metals and precious metals such as copper, zinc, gold, and silver, covering a total area of 4,788 square kilometers. This initiative aims to accelerate the exploration and exploitation of mineral resources in the Kingdom. In line with transparency standards, Saudi Arabia provides all geological data to investors to facilitate their investment decisions. The country’s commitment to sustainable mining practices and environmental protection is evident in its efforts to align with global environmental specifications.
In conclusion, Minister of Industry Bandar Al-Khorayef’s visit to major mining companies and technology centers in Chile underscores Saudi Arabia’s focus on strengthening international partnerships and attracting foreign investments in the mining sector. The discussions with Chilean counterparts have explored opportunities for collaboration in metal production, use of advanced mining technologies, and sustainable mining practices. Saudi Arabia’s efforts to enhance the investment environment, promote mineral exploration, and boost the efficiency of mineral supply chains demonstrate its commitment to sustainable development in the mining sector. The upcoming International Mining Conference in Riyadh presents a platform for further collaboration and exchange of expertise in the global mining industry.
