The mining sector is poised for unprecedented growth in the wake of the green revolution, making collaboration between countries critical if they want to truly reap the rewards on offer, says Khalid Bin Saleh al-Mudaifer, vice minister of industry and mineral resources for mining affairs in the Kingdom of Saudi Arabia.
Saleh al-Mudaifer recently led a delegation to South Africa as part of the country’s strategy to become a global supplier of hydrogen and set itself up as a hub for green minerals and highly competitive manufacturing.
Saudi Arabia has indicated its intent to collaborate with South Africa, saying there are many opportunities for integration. South Africa’s strategic location and its gateway status for sub-Saharan Africa have contributed to the Kingdom’s decision to improve cooperation and collaboration with the country.
“Investment into Africa extends from here right through to Central Asia,” said Saleh al-Mudaifer. “It is a region that will continue to see growth as demand for minerals and metals increases - especially as decarbonisation efforts increase and net-zero goals are set.”
He said as the global geopolitical crisis continued to pose risks, new approaches for partnerships, operations and industrial integration would be sought. “At the heart of all of this will be supply chain sustainability. Going forward, we will see a focus on collaboration between countries that know and trust one another. The cost of business is another factor driving this change. As the world experiences rising costs, so too new technologies and new business models will become the norm to ensure cost-efficient and resilient operations.”
According to Saleh al-Mudaifer, Saudi Arabia is bullish about the mining and minerals sector in Africa. “The energy transition to new commodities such as copper, cobalt and lithium brings the opportunity to the continent. The experience and expertise demonstrated by African miners ticks critical boxes for investors, and countries that are creative in their approaches to address supply chain challenges will benefit.”
He said now was the time to move the continent – along with the Middle East - into the global minerals and metals spotlight.
“Without the critical minerals found in Africa, there will be no energy transition. If we don’t work together, we will not find, extract or be able to process the minerals sustainably to achieve net-zero goals.”
He said Saudi Arabia was putting its money where its mouth was by investing billions into geodata to make sure it was as up-to-date as possible. “We are investing extensively in the supply chain to ensure the reliability of supply while we are also offering unprecedented deals to attract investors, including extremely competitive corporate mineral tax rates.”
He said his country saw mining and minerals as a development sector and not fiscal.
“We are also investing billions into the country’s infrastructure to ensure we are not only reliable, but to establish the Kingdom as a critical global logistics hub.”
Saleh al-Mudaifer said while they were investing in their mining and mineral capabilities, Saudi Arabia was also excited to be working with African nations. “We need to learn from each other. By sharing knowledge and expertise we are creating opportunities for more collaboration that will benefit all those involved while driving even more investment into the African and Middle East region.”
