Saudi Industry Minister Explores Mining Opportunities in Chile

Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef explored investment opportunities in lithium, copper, and iron ore production and processing during a visit to major mining companies and specialized technology centers in Santiago, Chile. The visit, which took place in late July 2024, underscores Saudi Arabia’s strategic push to secure vital mineral resources and advanced technologies as part of its Vision 2030 economic diversification agenda.

Context and Background

Minister Alkhorayef’s tour of Chile and Brazil, which began on July 22, 2024, is a key component of the Kingdom’s strategy to strengthen international partnerships and attract foreign investments to its mining sector. Chile is a global leader in copper and lithium production, making it a natural partner for Saudi Arabia as it seeks to develop its own mineral wealth, estimated at SAR 9.4 trillion. The visit aligns with Saudi efforts to become a global hub for mining and minerals by adopting modern technologies and building local expertise.

Key Details

During his stay, Minister Alkhorayef met with Codelco CEO Ruben Alvarado to discuss investment opportunities in lithium and copper. Codelco, founded in 1976, is a world leader in copper production and has a strong presence in Asia, Europe, and the United States. The Kingdom already partners with Codelco through Almar Water Solutions, owned by Abdul Latif Jameel. The minister also held bilateral talks with leaders of Antofagasta PLC, SQM, and Quiñenco, focusing on mutual opportunities in copper, lithium, and iron ore. These meetings highlighted the role of Manara Minerals Investment Company in capitalizing on these opportunities and reviewed investment prospects in the Kingdom, including the exploration incentives program and licensing for mining belts. Additionally, the minister invited Chilean mining leaders to participate in the Future Minerals Forum in Riyadh next January.

International Impact

Beyond direct investment talks, the minister explored advanced mining technologies at the Advanced Mining Technology Center (AMTC) and the mining control center of AngloAmerican Company. Discussions centered on using modern technologies to enhance mining operations, improve efficiency, adhere to global environmental standards, implement remote mine management practices, and apply artificial intelligence (AI) in mineral exploration. This technology transfer is critical for Saudi Arabia as it aims to modernize its mining sector and reduce environmental impact.

Vision 2030 Alignment

These engagements directly support Saudi Vision 2030’s goal of making mining the third pillar of the national economy. The Kingdom has taken significant steps to improve the investment environment, including amending the mining investment bylaw, launching an exploration empowerment program with $182 million to mitigate exploration risks, offering co-financing of 75% of capital expenditures, a 5-year tax exemption, and allowing 100% direct foreign ownership. The recent launch of the National Minerals Program and the issuance of exploration licenses for metalliferous belts in Jabal Sayid and Al-Hijar further demonstrate Saudi Arabia’s commitment to accelerating mineral resource development. By building strategic partnerships with global leaders like Chile, the Kingdom is positioning itself as a major player in the global mining market, ensuring a sustainable and prosperous future under Vision 2030.

20 Questions

Q1. What was the purpose of Minister Bandar bin Ibrahim Alkhorayef’s visit to Chile?

A1. The visit aimed to explore investment opportunities in lithium, copper, and iron ore production and processing, and to discuss technology transfer and knowledge exchange with leading mining companies and research centers.

Q2. Which major Chilean mining companies did the minister meet with?

A2. He met with leaders from Codelco, Antofagasta PLC, SQM, and Quiñenco to discuss mutual opportunities in copper, lithium, and iron ore, as well as investment prospects in Saudi Arabia.

Q3. What is Codelco’s role in the global mining industry?

A3. Codelco, founded in 1976, is a global leader in the exploration, production, and sale of copper and its byproducts, with major markets in Asia, Europe, and the United States.

Q4. How does Saudi Arabia currently partner with Codelco?

A4. The Kingdom partners with Codelco through Almar Water Solutions, a company owned by Abdul Latif Jameel, which highlights the existing collaboration between the two entities.

Q5. What is Manara Minerals Investment Company’s role in these discussions?

A5. Manara Minerals Investment Company was highlighted as a key vehicle for capitalizing on opportunities in the mining sector, including exploration, production, and investment in minerals.

Q6. What invitation did Minister Alkhorayef extend to Chilean mining leaders?

A6. He invited them to participate in the Future Minerals Forum in Riyadh next January, a key event for global mining stakeholders.

Q7. Which technology centers did the minister visit in Chile?

A7. He visited the Advanced Mining Technology Center (AMTC) and the mining control center of AngloAmerican Company to discuss modern technologies for mining operations.

Q8. What technologies were discussed during the visit to Chile?

A8. Discussions focused on using artificial intelligence (AI), remote mine management, and advanced technologies to improve efficiency, environmental standards, and exploration.

Q9. Who accompanied Minister Alkhorayef on this tour?

A9. He was accompanied by Vice Minister for Mining Affairs Eng. Khalid bin Saleh Al-Mudaifer, Saudi Export-Import Bank CEO Saad Alkhalb, and leaders from the industry and mining sector.

Q10. What was the duration of the minister’s tour of Brazil and Chile?

A10. The tour began on July 22, 2024, and included a series of meetings with global mining companies to strengthen international partnerships and attract foreign investments.

Q11. How does the visit to Chile support Saudi Vision 2030?

A11. It supports Vision 2030 by helping to establish mining as a key economic pillar, attract foreign investment, develop local competencies, and modernize the sector through technology transfer.

Q12. What is the estimated value of Saudi Arabia’s mineral resources?

A12. The Kingdom’s mineral resources are estimated at SAR 9.4 trillion, and the goal is to maximize their economic value through exploration and modern mining practices.

Q13. What incentives does Saudi Arabia offer to attract mining investments?

A13. Incentives include co-financing of 75% of capital expenditures, a 5-year tax exemption, and 100% direct foreign ownership, as part of improvements to the mining investment environment.

Q14. What is the Exploration Empowerment Program?

A14. Announced by the Ministry of Industry and Mineral Resources, it allocates $182 million to mitigate investment risks in exploration, supporting investors in making clear and transparent decisions.

Q15. How does Saudi Arabia provide geological data to investors?

A15. The Kingdom provides all geological data, constantly updated based on the General Geological Survey Program, on a digital platform, adding to over 80 years of historical data.

Q16. What is the National Minerals Program?

A16. Launched recently, it aims to enhance the quality and efficiency of mineral supply chains and ensure continuous supply to local industries, with an investment target of SAR 120 billion.

Q17. What exploration licenses were recently issued in Saudi Arabia?

A17. Three licenses were issued in the Jabal Sayid belt in Madinah and two in the Al-Hijar site in the Asir region, covering a total area of 4,788 square kilometers for exploration of base and precious metals.

Q18. Which metals are targeted in the newly licensed exploration belts?

A18. The belts contain copper, zinc, lead, gold, and silver in Jabal Sayid, and copper, zinc, gold, and silver in Al-Hijar, reflecting a focus on a variety of precious and base metals.

Q19. How does technology transfer from Chile benefit Saudi mining?

A19. It allows Saudi Arabia to adopt advanced technologies like AI and remote management to improve efficiency, reduce environmental impact, and accelerate mineral exploration and production.

Q20. What is the long-term goal of Saudi Arabia’s mining strategy?

A20. The goal is to become a global hub for mining and minerals by maximizing the value of mineral resources, attracting foreign investment, and building a sustainable sector that supports Vision 2030.

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