Saudi Arabia to Sign Mining Cooperation Agreement with the U.S.

Reported by Mining.com – Saudi Arabia announced on Tuesday that it will negotiate a mining cooperation agreement with the United States.

According to the Saudi Press Agency (SPA), the Cabinet, led by Crown Prince Mohammed bin Salman, has authorized the Ministry of Industry and Mineral Resources to draft a memorandum of understanding (MoU) with U.S. officials.

The Cabinet stated that the proposed agreement, to be signed with the U.S. Department of Energy, will focus on mineral resources and mining cooperation.

This move aligns with Saudi Arabia’s ambition to become a global hub for battery and electric vehicle (EV) manufacturing. As part of its Vision 2030 economic diversification strategy, the Kingdom is heavily investing in mining and industry to reduce its reliance on oil.

Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Alkhorayef, has announced multiple plans to import raw materials and utilize both domestic and international metals for battery production.

Additionally, Saudi Arabia is seeking to expand its presence in the global mining market. In January, Saudi officials held preliminary talks with Chile’s state-owned Codelco on potential copper industry investments. The Kingdom also plans to increase copper imports from Chile for domestic processing.

Through Manara Minerals Investment Co.—a joint venture between the Public Investment Fund (PIF) and Saudi Mining Company (Ma’aden)—the country is making strategic overseas investments. In 2023, Manara acquired a 10% stake in Vale’s base metals business, a $26 billion spin-off from the Brazilian mining giant.

Currently, Saudi Arabia consumes about 365,000 tons of copper annually, a figure expected to more than double by 2035, with most demand met through imports. Domestically, the Kingdom has discovered significant mineral deposits over the past two decades, including gold, silver, copper, tin, tungsten, nickel, zinc, phosphates, and bauxite.

Saudi Arabia is also exploring deep-sea mining in the Red Sea, with plans to process extracted minerals at the Yanbu Industrial City.

According to the Ministry of Energy and Mineral Resources, the country has mapped 1,270 gemstone sites and 1,170 other mineral deposits, with a growing number of exploration and mining licenses being issued.

Source: https://geoglobal.mnr.gov.cn/zx/kczygl/zcdt/202505/t20250508_9327604.htm