The Golden Trio: Gold, Copper, and Lithium Driving Saudi Arabia’s Economic Diversification
Saudi Arabia’s recent discovery of significant gold and copper deposits in Al Khurmah region in Mecca marks another milestone in the Kingdom’s efforts to diversify its economy.
The Kingdom’s state-owned mining company, Ma’aden, has been actively involved in gold mining since 1988 with the operation of the Mahd ad-Dahab mine, one of Saudi Arabia’s largest and oldest gold mines.
With the Future Minerals Forum in Riyadh spotlighting the mining sector as a strategic growth area, this discovery underscores Saudi Arabia’s growing role as a global player in critical minerals production.
The Economic Impacts of Gold and Copper Discoveries
The newfound reserves, announced by state-owned Ma’aden this week, are expected to significantly boost Saudi Arabia’s mineral wealth, according to AGBI.
Estimated at $2.5 trillion (9.375 trillion SR), the untapped resources include gold, copper, and other critical minerals, which could triple the sector’s contribution to the national GDP by 2030, according to Oil Price.
Additionally, the sector is poised to create thousands of jobs and attract foreign investment, particularly as Saudi Arabia positions itself as a hub for global mineral trade.
Lithium Exploration: Securing the Future of Energy
In addition to gold and copper, Saudi Aramco is exploring lithium extraction from oil field brines in collaboration with KAUST and Lihytech. “Promising, but not yet commercially viable” is how the Kingdom’s mining minister described the lithium extraction project to Reuters.
This initiative is crucial as lithium is a key component in batteries for electric vehicles and renewable energy systems. While commercial production is not expected until 2027, the project highlights Saudi Arabia’s strategic pivot toward resources critical for the energy transition.
Global Partnerships Boost Mining Potential
International partnerships are integral to Saudi Arabia’s mining ambitions. According to the Middle East Monitor, a recent agreement with the United Kingdom focuses on securing critical minerals like copper, lithium, and nickel.
These resources are essential for industries ranging from electric vehicles to data centers. The partnership also reflects the Kingdom’s broader vision of strengthening supply chains and fostering economic collaboration with global stakeholders.
Future Minerals Forum: A Platform for Mining Innovation
The Future Minerals Forum, held annually in Riyadh, showcases the Kingdom’s mining potential to a global audience. This year’s event drew over 20,000 participants from 170 countries, including key industry leaders and policymakers.
The forum serves as a springboard for announcing initiatives like exploration auctions covering 50,000 square kilometers of land.
These auctions offer companies the opportunity to bid for exploration rights, enabling them to access and develop valuable mineral resources such as gold, copper, and other metals, further solidifying Saudi Arabia’s ambition to become a global mining powerhouse.
Mining as a Pillar of Vision 2030
The discovery of gold and copper deposits, alongside initiatives like lithium extraction and international partnerships, underscores Saudi Arabia’s determination to diversify its economy.
As the Kingdom expands its mining sector, it aligns with global demand for critical minerals essential for technological and energy advancements. Through strategic planning and global collaboration, Saudi Arabia is not only enhancing its economic resilience but also shaping the future of sustainable mineral production.
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