Autumn: International cooperation is essential for the security of critical mineral supply chains
In a high-level dialogue session in Istanbul, Turkey, His Excellency the Minister of Industry and Mineral Resources, Mr. Bandar Al-Khorayef, stressed that the complex challenges facing global critical mineral supply chains cannot be addressed by individual solutions, but rather require concerted efforts and comprehensive international cooperation to ensure their stability and sustainability.
The minister's remarks came during his participation in a session titled "Stimulating Investment in Critical Minerals Supply Chains," which was attended by leading decision-makers and investors in the mining sector from around the world. Al-Khorayef emphasized that international cooperation is the cornerstone for enabling quality investments and achieving sustainability in this vital sector, noting that joint efforts are essential to address challenges related to financing, processing operations, and the application of environmental and social standards.
Global context and importance of critical minerals
Critical metals, such as lithium, cobalt, nickel, and rare earth elements, are gaining increasing strategic importance in the modern global economy. They form the backbone of future industries, from electric vehicle batteries, wind turbines, and solar panels to advanced electronics and military applications. As the global transition to clean energy and the digital economy accelerates, demand for these metals is expected to rise dramatically, placing unprecedented pressure on existing supply chains concentrated in a limited number of countries, thus creating geopolitical and economic risks.
The Kingdom's vision and its pivotal role
Minister Al-Khorayef explained that Saudi Arabia, within the framework of Vision 2030, views the mining sector as the third pillar of national industry and a key driver of economic diversification. He noted that the Kingdom possesses unique competitive advantages that qualify it to be an active and reliable partner in global critical minerals supply chains. These advantages include its strategic geographic location connecting three continents, the availability of conventional and renewable energy sources at competitive prices, and its vast mineral wealth, valued at more than $2.5 trillion.
Developing the investment environment to attract capital
Al-Khorayef reviewed the Kingdom's efforts over the past years to develop its investment environment in the mining sector. He highlighted the launch of the new mining investment law, which is among the most competitive globally, balancing the interests of investors with maximizing the utilization of mineral resources. He also emphasized the Kingdom's commitment to expediting mining license issuance procedures, aiming to reduce the processing time to approximately 90 days, thereby enhancing the sector's attractiveness to high-quality local and international investments. The Minister concluded by stressing the importance of employing innovation and modern technologies to improve the efficiency of mining operations and ensure their sustainability, in line with the global Sustainable Development Goals.
