Saudi minister explores mining investment and knowledge transfer during Chile visit

RIYADH: Saudi Arabia is exploring investment opportunities in lithium, copper, and iron, as the minister of industry and mineral resources met with mining firms in Chile during his South American tour. 

Bandar Alkhorayef, who visited Brazil before arriving in Chile, engaged with leading companies and industry stakeholders on knowledge transfer, innovation, and advanced technologies, according to the Saudi Press Agency. 

The two-country tour, which began on July 22, was part of a broader strategy to identify investment opportunities in the Saudi mining sector, strengthen international partnerships, and attract foreign investments, all central to Saudi Vision 2030. 

In Chile, the minister discussed investment prospects in lithium and copper with Ruben Alvarado, CEO of Codelco, a leading global player in copper exploration, production, and sales with a significant presence in Asia, Europe, and the US. 

The Kingdom has already collaborated with Codelco through Almar Water Solutions, owned by Abdul Latif Jameel. 

Alkhorayef also engaged in bilateral meetings with leaders from major Chilean mineral companies, including Antofagasta PLC, SQM, and Quiñenco. 

These discussions centered on mutual opportunities in the sector, particularly in copper, lithium, and iron ore. 

The role of Saudi Arabia’s Manara Minerals Investment Co. in leveraging these opportunities was highlighted. The minister also noted that Manara is interested in Chile due to its position as the world’s largest producer of battery metal. 

Current investment prospects in the Kingdom’s mineral exploration, the exploration incentives program, and mining belt licensing were also reviewed. 

The minister also invited Chilean industry leaders to participate in the Future Minerals Forum, an annual international event focused on the sector, to be held in Riyadh next year. 

Alkhorayef, along with officials from the Advanced Mining Technology Center and AngloAmerican Co.’s mining control center, discussed the application of modern technologies to enhance exploration operations. 

This included adherence to global environmental standards, modern remote mine management practices, and the use of artificial intelligence in mineral exploration, as reported by SPA. 

Also present at the meetings were Vice Minister for Mining Affairs Khalid bin Saleh Al-Mudaifer, Saudi EXIM Bank CEO Saad Al-Khalb, and other industry leaders. 

The Kingdom aims to become a global hub in the sector by attracting foreign investments, developing local expertise, and adopting modern technologies. 

This effort aims to maximize the economic value of mineral resources, estimated at SR9.4 trillion ($2.51 trillion), and enhance Saudi Arabia’s status in the global market. 

Recent measures taken by the Kingdom to improve the investment environment in the sector included amending the mining investment bylaw and launching incentives for the sector, such as co-financing 75 percent of capital expenditures, a five-year tax exemption, and 100 percent direct foreign ownership. 

The ministry announced the Exploration Empowerment Program, allocating $182 million to mitigate exploration investment risks. To assist investors in making informed decisions and adhere to transparency standards, the Kingdom provides constantly updated geological data on a digital platform, based on results from the General Geological Survey Program. 

Significant progress has been made in mineral exploration programs conducted by the Saudi Geological Survey, including geological survey and mapping projects valued at approximately SR1 billion. The Kingdom has expedited the process of granting licenses to local and international investors and announced three global public auctions for licenses. 

There has also been the establishment of the National Minerals Program, designed to enhance the quality and efficiency of mineral supply chains and ensure continuous supply to local industries and major projects. The Kingdom aims to invest SR120 billion in basic and strategic mineral industries.