Saudi Arabia moving to build a non-oil economy, bauxite mining to play key role

On 9^th June’20, Saudi Arabia’s cabinet has approved a new mining law that has an objective to accelerate foreign investment in the sector as part of efforts to diversify its economy away from hydrocarbons.

Bandar Alkhorayef, Minister of Mining and Industry said: “The new law facilitates investor access to financing and supports exploration and geological survey activities.”

He also added: “This will help attract local and foreign investors and eventually raise mining sector participation in gross GDP.”

The Saudi government targets to more than triple this sector’s contribution to the nation’s economic output and to create more than 200,000 direct and indirect jobs in the sector by 2030.

The Kingdom’s effort to build an economy that does not largely depend on oil and state subsidies involves a shift towards mining vast untapped reserves of bauxite and other minerals.

The energy ministry evaluates the kingdom’s unused mineral resources to be valued at 5 trillion riyals ($1.33 trillion).

In April’20, the cabinet approved setting up a state-owned, joint-stock company for mining services.

Currently, Saudi Ma’aden is the kingdom’s sole miner. In recent years it expanded into the production of aluminium and phosphates. It is 65% owned by the kingdom’s Public Investment Fund.