Ras Al-Khair investments ‘highlight potential of Saudi mining sector’

Ras Al-Khair port, developed by the Saudi Ports Authority, is one of the most modern in the world and was built to serve as an export hub for petrochemical, phosphate and aluminum products created at nearby processing facilities.
Updated 26 November 2016

Ras Al-Khair investments ‘highlight potential of Saudi mining sector’

JEDDAH: The significant amount of capital invested by top firms such as Saudi Basic Industries Corp. (SABIC), Alcoa and The Mosaic Company in Ras Al-Khair clearly demonstrates the quality and potential of the Kingdom’s mining sector, Saudi Arabian Mining Co. (Maaden) CEO Khalid Al-Mudaifer told Arab News.

“Ras Al-Khair is the anchor of the Saudi mining sector and as such it will play a significant role in the economic diversification of the Saudi economy,” he added.
Ras Al-Khair, a $35 billion multi commodity minerals hub located in the Eastern Province, has been an ongoing initiative for over 10 years.
Custodian of the Two Holy Mosques King Salman will formally inaugurate Ras Al-Khair’s various key facilities on Tuesday.
According to Al-Mudaifer, Maaden is proud of the fact that Ras Al-Khair has already delivered 12,000 direct job opportunities and tens of thousands more indirect jobs for ambitious young Saudi nationals.
“The city now acts as the center of excellence for Saudi mining and our facilities here will ensure that in the future a diverse array of high quality Saudi mining products will continue to successfully penetrate local, regional and global markets,” said the CEO.
He asserted that Ras Al-Khair would continue to have a big role to play in achieving the goals of Saudi Vision 2030 and the National Transformation Program 2020.
The CEO said: “Saudi Vision 2030 seeks to increase the industrial development of mineral resources in Saudi Arabia while ensuring that the entire mining value chain is captured within the Kingdom so we can deliver maximum value and job growth.”
Al-Mudaifer said: “Through facilities like those at Ras Al-Khair, the industry is continuing to grow production volumes, increase investment, and maintain a sustained focus on the development of skilled human resources.
He added: “Under the National Transformation Program, by 2020 mining activity in Saudi Arabia is expected to provide 90,000 direct jobs and increase its contribution to Saudi GDP to SR97 billion ($25.9 billion).”
A key part of the success of Ras Al-Khair is the world-class infrastructure facilities developed here by Maaden’s public sector partners, Al-Mudaifer pointed out.
In addition to Maaden’s integrated complexes for aluminum and phosphate production, Ras Al-Khair is supported by key infrastructure including a 1,400 km railway connecting to the main mines in the country, a major port supporting exporting operations, one of the world’s largest desalination and power plants and a fully functioning village for workers.
It is also home to a maritime complex that will establish local shipbuilding and related industries to be built by Aramco.
The Ministry of Energy, Industry and Mineral Resources is a key stakeholder in the Ras Al-Khair project’s development.
“There is no doubt that Ras Al-Khair will play a pivotal part in helping the Kingdom move away from oil-based income,” said Energy, Industry and Mineral Resources Minister Khalid Al-Falih was quoted as saying in a press release.
“We are confident that the city will help establish Saudi Arabia’s mining sector on the global stage and also contribute to the generation of multiple downstream investment opportunities,” he added.
Ras Al-Khair is key example of how the Kingdom’s leadership is delivering on the goal of Saudi Vision 2030 to reduce dependence on oil-based income and facilitate national economic diversification, the press release added.


Oil recoups losses as OPEC, US Fed see robust economy

Updated 40 min 33 sec ago

Oil recoups losses as OPEC, US Fed see robust economy

  • US-China trade deal will help remove ‘dark cloud’ over oil, says Barkindo

LONDON: Oil prices reversed early losses on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said it saw no signs of global recession and rival US shale oil production could grow by much less than expected in 2020.

Also supporting prices were comments by US Federal Reserve Chair Jerome Powell, who said the US economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt.

Brent crude futures stood roughly flat at around $62 per barrel by 1450 GMT, having fallen by over 1 percent earlier in the day. US West Texas Intermediate crude was at $56 per barrel, up 20 cents or 0.4 percent.

“The baseline outlook remains favorable,” Powell said.

OPEC Secretary-General Mohammad Barkindo said global economic fundamentals remained strong and that he was still confident that the US and China would reach a trade deal.

“It will almost remove that dark cloud that had engulfed the global economy,” Barkindo said, adding it was too early to discuss the output policy of OPEC’s December meeting.

HIGHLIGHT

  • US oil production likely to grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations.
  • The prospects for ‘US crude exports had turned bleak after shipping rates jumped last month.’

He also said some US companies were now saying US oil production would grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations — reducing the risk of an oil glut next year.

US President Donald Trump said on Tuesday Washington and Beijing were close to finalizing a trade deal, but he fell short of providing a date or venue for the signing ceremony.

“The expectations of an inventory build in the US and uncertainty over the OPEC+ strategy on output cuts and US/China trade deal are weighing on oil prices,” said analysts at ING, including the head of commodity strategy Warren Patterson.

In the US, crude oil inventories were forecast to have risen for a third straight week last week, while refined products inventories likely declined, a preliminary Reuters poll showed on Tuesday.

ANZ analysts said the prospects for US crude exports had turned bleak after shipping rates jumped last month.