Saudi Arabia is actively pursuing a bold vision to become a key player in the global mining landscape by establishing a 'super region' connecting major mining hubs in the east. The initiative, driving economic diversification and leveraging existing oil expertise, aims to create a self-sustaining sub-economy through collaboration and infrastructure development.
In less than a decade, Saudi Arabia has positioned itself as a key player in the mining sector, despite a relatively modest ore output. This transformation stems from Vision 2030, a long-term economic and social reform program launched in 2016. The Kingdom, heavily reliant on oil for its GDP (approximately 40% in 2022) and fiscal revenue (75%), seeks to diversify its economy through sectors like mining.
This move leverages Saudi Arabia's existing oil expertise and aims to fortify its economy against the potential decline in fossil fuel demand. Three years ago, Saudi Arabia formally introduced the concept of a ‘super region' at its flagship Future Minerals Forum (FMF). The country has been actively engaging governments and investors in major Northern Hemisphere mining hubs, including a recent trip to Australia. This delegation, comprised of high-ranking officials from various ministries and development funds, exemplifies Saudi Arabia's commitment to this ambitious vision. The 'super region' concept envisions a transcontinental hub that connects major mining players in the east, with Saudi Arabia serving as the central nexus. This network aims to integrate the collective strengths of Africa's abundant critical mineral reserves, the Middle East's financial resources and investment expertise, and Central and South Asia's burgeoning demand and industrial capabilities, creating a self-sustaining sub-economy.This ‘super region' concept presents itself as an alternative to the increasingly polarized global mining landscape dominated by the US and China. Saudi Arabia's strength lies in its cultural familiarity, existing economic ties, and its convening power within the region. At this year's FMF, the 'super region' remained a central focus, with Saudi Arabia leading the discussions. Abdulrahman AlBelushi, the Kingdom's assistant deputy minister for Mining Enablement, described the forum as a 'movement' driving towards practical and scalable solutions. The forum hosted a series of roundtable discussions, each focusing on a specific sub-region. Participants included prominent mining executives, financiers, and government representatives, all chaired by Saudi representatives. Mining Magazine had exclusive access to the Central Asia Roundtable, where discussions centered around leveraging the region's vast mineral resources.The Super Region idea is undeniably ambitious. By linking mineral supply chains across continents and integrating them with advanced infrastructure and ESG standards, Saudi Arabia is positioning itself as the crucial link in a new global economic structure. Leyla Keser Berber, chairperson of Tethys, a company promoting itself as a 'trans-Eurasian' gateway, highlighted FMF's role as a catalyst, bringing together global stakeholders to find practical solutions. She emphasized the forum's neutrality, ensuring all regions have an equal voice. However, a key question remains: can Saudi Arabia effectively align the interests of so many diverse players? Central Asia, for example, possesses abundant critical minerals, yet fragmented efforts and infrastructure challenges hinder its mining sector. During the roundtable, a representative from a financing group suggested dividing critical infrastructure investments across specific mining projects, such as railways connecting mining zones, to reduce costs and enhance feasibility. Central Asia's strategic location at the heart of the 'Middle Corridor' – a trade route connecting China to Europe – makes it a crucial piece of the super region puzzle. Many countries along this corridor, including Kazakhstan, Uzbekistan, and Turkey, are also rich in natural resources. When infrastructure corridors are integrated with mining projects, they not only lower capital and operational expenses but also facilitate the establishment of regional mining hubs, environmentally sustainable processing facilities, and localized industrial value chains. Extracting and retaining value from both minerals and this strategic location remains a challenge. A key issue identified during the roundtable was the need for successful regional collaboration and attracting the necessary investment. Speakers proposed several solutions, including developing regional mining hubs and utilizing a blend of public-private financing mechanisms.
Mining SAUDI ARABIA MINING SUPER REGION VISION 2030 ECONOMIC DIVERSIFICATION CRITICAL MINERALS INFRASTRUCTURE ESG STANDARDS CENTRAL ASIA MIDDLE CORRIDOR
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