Saudi Arabia to rely on Africa’s mineral resources for energy transition
As part of its efforts to dominate the natural resources industry and be a global economic powerhouse, the Kingdom of Saudi Arabia has set eyes on the African continent as a major contributor to their objective.
Titled ‘Vision 2030,’ Saudi intends to diversify its economy by focusing primarily on the natural resources industry – mining, oil and gas and other petrochemical products. The kingdom plans to become a hub for businesses involved in minerals for electric vehicles and batteries, and by improving its infrastructure, it hopes to boost its economy.
“Saudi Arabia is being transformed. Through this transformation, we want to be an economic powerhouse. To be an industrial [power], we need minerals. To build projects, we need minerals. Therefore, mining of Saudi Arabia [is] the first step. Bringing minerals from outside is the second step. The third step is to build Saudi Arabia as a hub,” the Vice Minister for Mining, Khalid al-Mudaifer, told Semafor.
Mudaifer promised that the kingdom would assist African countries in enhancing their local minerals refinery into higher-value products, enabling them to benefit more from their resources economically. However, he acknowledged that not all countries have a strong enough local supply chain to support such aspirations. Factors such as insufficient energy, infrastructure, skilled workers, and power grids can pose challenges.
“Saudi Arabia needs more minerals and different types of minerals. We developed our mining strategy to make mining an economic driver … And we developed our mining strategy to also provide for developments for remote areas,” said Mudaifer.
To set the pace for the rollout of their policies, Saudi Arabia has signed Memorandums of Understanding (MOUs) with Egypt's Ministry of Petroleum and Mineral Resources, Morocco's Ministry of Energy Transition and Sustainable Development, and the Congo's Ministry of Mines of the Democratic Republic. These MOUs entail cooperation in the area of mineral wealth. Additionally, a separate agreement with Russia focuses on geology. Discussions have also taken place with the U.S. regarding joint efforts to secure access to metals essential for both countries' transition to cleaner energy sources.
