MINING

SAUDI UNLOCKS MINING’S ROLE IN ENERGY TRANSITION

Saudi Aramco and Ma’aden have signed a non-binding heads of terms to establish a minerals exploration and mining joint venture (JV) in the kingdom.

The proposed JV aims to focus on energy transition minerals, particularly lithium extraction from high-concentration deposits, while also advancing cost-eective direct lithium extraction (DLE) technologies. Commercial production of lithium is expected to begin by 2027.

By entering the mining sector, Aramco, one of the world’s largest energy and chemicals companies, seeks to extend its technological expertise into an adjacent industry, leveraging its advanced data management capabilities and innovation-driven approach.

FUTURE-FACING COMMODITIES

The initiative also aims to unlock Saudi Arabia’s vast mineral resources and meet the increasing global demand for lithium and other transition minerals. The JV will utilise subsurface data and emerging technologies to contribute to the kingdom’s economic diversification and energy goals.

Aramco has identified regions with lithium concentrations of up to 400 parts per million, presenting a significant opportunity for extraction. The JV will capitalise on Aramco’s extensive operational experience, including its existing infrastructure, drilling expertise, and over 90 years of geological data.

“The proposed JV will enable extraction of energy transition minerals, contributing meaningfully to the growth of more sustainable energy solutions while diversifying our portfolio for a lower-carbon future,” said Nasir Al-Naimi, Aramco’s president of upstream. “We expect that this partnership will leverage the world’s leading upstream enterprise to apply significant low-cost advantages, industry experience, technological innovation, accumulated subsurface knowledge and an integrated supply chain ecosystem, with a view to meeting the kingdom’s and potentially the world’s projected lithium demand.

Ma’aden, which is the largest multi-commodity mining and metals company in the Middle East and North Africa region has embarked on one of the most extensive single-jurisdiction exploration programmes in the Arabian Shield, targeting the kingdom’s estimated USD 2.5 trillion mineral endowment.

As a crucial component of the energy transition, lithium plays a key role in sectors such as electric vehicles, energy storage, and renewables. Over the past five years, global lithium demand has tripled, with an anticipated compound annual growth rate exceeding 15% through 2035. Saudi Arabia’s domestic lithium demand is expected to increase twentyfold between 2024 and 2030, supporting the production of up to 500,000 electric vehicle batteries and 110 gigawatts (GW) of renewable energy.

MORE PROJECTS UNDERWAY

The JV was announced during the fourth Future Minerals Forum held in Riyadh, which was attended by more than 20,000 participants from 170 countries, featuring 250 speakers across 70 sessions discussing advancements, challenges, and international co-operation in the mining sector.

The event also saw four other key strategic announcements aligned with Saudi Vision 2030’s objectives of economic diversification and industry development.

In addition to the JV, Ma’aden unveiled significant mineral discoveries, including an extension of the Mansourah and Massarah gold mines following high-grade gold findings at a depth of 220 metres, which could enable underground mining. Additional discoveries at Wadi Al Jaww and Shayban further enhance future mining prospects.

Hadeed, a subsidiary of the Public Investment Fund (PIF), announced the full acquisition of Al Rajhi Steel and a SAR 25 billion investment plan to boost domestic steel production. The initiative aims to strengthen the kingdom’s steel value chain by producing 10 million tonnes annually to meet local demand.

Meanwhile, Chinese steel giant Baosteel announced plans to build its first integrated steel plant outside China in partnership with Aramco and the PIF. The facility will produce 1.5 million tonnes of steel plates annually, reinforcing Saudi-China economic collaboration.

INNOVATION STUDIO

In addition, the Ministry of Industry and Mineral Resources, in collaboration with its public and private sector partners, launched the Mining Innovation Studio, an initiative designed to solve critical challenges in the mining sector through cutting-edge technological solutions. 

The collaborative eort also features the Saudi Geological Survey, the National Industrial Development and Logistics Program, Ma’aden, Newlab (a global platform for innovation and entrepreneurship), and Saudi Mining Services Company (ESNAD).

The Mining Innovation Studio has invited global innovators, entrepreneurs, and start-ups to join its mission of transforming the mining industry. By leveraging the kingdom’s vast resources and unparalleled infrastructure, participants will gain access to unique opportunities to develop and commercialise solutions with global impact.

The sector will also be supported by Saudi Arabia’s railway network, which spans 5,500 kilometres. Over 25 million tonnes of minerals were transported through the network last year.

The National Strategy for Transport and Logistics, developed in collaboration with the Ministry of Industry and Mineral Resources, prioritises railway expansion, with nearly 50% of government funding in transport, communications, and logistics dedicated to railways. Sustainability remains a key focus, with increased use of environmentally friendly materials and advanced technologies to improve eciency and reduce environmental impact.