Saudi Arabian Mining Company (Ma'aden) Investments: A $110 Billion Plan for the Next Decade
Bob Wilt, CEO of Saudi Arabian Mining Company (Ma'aden), unveiled an ambitious strategy to invest approximately $110 billion (around SAR 412 billion) over the next decade. This massive move is part of the Public Investment Fund-owned company's efforts to solidify its position as one of the world's leading mining giants, leveraging the Kingdom's vast natural resources.
A qualitative leap in production and expansion
In his remarks to the Semaphore website, Wilt explained that the massive investment plan aims to bring about a qualitative leap in the company's production capabilities. Strategic objectives include tripling phosphate and gold production from current levels, as well as doubling aluminum production. To achieve these goals, Ma'aden is currently working on eight mega-projects; two of which have already commenced, while the remaining six are in advanced stages of planning and development.
Mining: The third pillar of Saudi industry
This move cannot be viewed in isolation from the broader economic context of Saudi Arabia. The mining sector is the third pillar of national industry within the Kingdom's Vision 2030, alongside oil and petrochemicals. These investments aim to diversify national income sources and reduce dependence on oil, thereby strengthening the stability of the Saudi economy, creating new job opportunities for young people, and supporting the balance of payments by increasing non-oil exports and decreasing imports of base metals.
Strategic partnerships and geopolitical balance
In the context of international cooperation, the CEO highlighted the company's strategic alliances, including a joint venture with the US-based company MP Materials, backed by the US Department of Defense (the Pentagon), to build a rare earth metals refinery. This step is of paramount importance given the role of these metals in the defense and advanced technology industries. Wilt emphasized that Ma'aden adopts a balanced approach to its international relations, seeking to leverage advanced Chinese expertise and technologies while maintaining its close strategic alliance with the United States in the critical metals sector.
Exploiting latent mineral resources
Official estimates indicate that Saudi Arabia possesses untapped mineral wealth valued at approximately $2.5 trillion. Ma'aden is working tirelessly to transform this latent wealth into productive assets, having recently announced significant gold discoveries and now focusing its efforts on intensifying copper exploration, a vital element in the global transition to clean energy. The company is expected to tap international debt markets to finance part of its expansion plans, building on its successful $1.25 billion bond issuance last year.
