Future Minerals Forum showcases rapidly changing face of Saudi Arabia’s mining sector

Future Minerals Forum showcases rapidly changing face of Saudi Arabia’s mining sector
With mining touted to be a central part of these economic diversification efforts, Saudi Arabia is hosting the second edition of the Future Minerals Forum at the King Abdulaziz International Conference Center in Riyadh. (Photo/Supplied)
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Updated 11 January 2023
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Future Minerals Forum showcases rapidly changing face of Saudi Arabia’s mining sector

Future Minerals Forum showcases rapidly changing face of Saudi Arabia’s mining sector
  • Saudi Arabia expects the value of its current mineral wealth to double from the previously estimated $1.3 trillion, due to the rising prices of valuable metals like gold, copper, and zinc

RIYADH: Saudi Arabia, a nation which has been dependent on oil for several decades, is now on a path of transformation as the Kingdom’s Vision 2030 aims to diversify its economy by giving importance to sectors like mineral excavation and tourism.

With mining touted to be a central part of these economic diversification efforts, Saudi Arabia is hosting the second edition of the Future Minerals Forum at the King Abdulaziz International Conference Center in Riyadh.

The event comes as the Kingdom’s mining sector is witnessing a rapid transformation and attracting big investors from various parts of the globe, thanks in part to the government’s launch earlier this year of a new mining law which removed unnecessary formalities and hassles involved in obtaining exploration licenses in Saudi Arabia.

Ensuring sustainability 

Apart from providing licenses in a very short time, Saudi Arabia is also ensuring that the mining sector in the Kingdom operates in a sustainable manner, especially considering the nation has set the target of net-zero emissions by 2060.

Paul Sullivan, lecturer at Johns Hopkins University and a senior associate fellow at King Faisal Center for Research and Islamic Studies Energy and Environmental Security, said that proper emphasis on circular mining techniques could make Saudi Arabia a world leader in “cleaner mining.”

“Sustainability is often overused and misused. If Saudi Arabia is thinking about true sustainability, it needs to go well beyond the way mining is done now to a better future,” Sullivan told Arab News.

He added: “Mining can be an ugly process that can damage the environment, including the precious water in Saudi Arabia. Saudi Arabia could be a leader in cleaner mining. It could be a leader in circular mining techniques and processes that will reduce the waste and pollution from mining.”

He further pointed out that Saudi Arabia should seriously monitor how companies are using and executing mining licenses which are issued to them.

“Liberal approval processes can get the investments in and create a more competitive atmosphere for Saudi Arabia. But Saudi Arabia needs to consider how these mining licenses will be implemented and executed,” said Sullivan.

Sullivan added that Saudi Arabia should operate the mining sector by ensuring future environmental health.

He noted: “Allowing mining to damage the environment of Saudi Arabia, including its precious water and land, would be a big mistake in making short-term profits. There should be stipulations for protecting the future of Saudi Arabia and for the employment and training of Saudis. Offsets along these lines are very important.”

During the second edition of FMF, an academic report that will provide insights into the future of the mining industry will be presented by minerals and metals expert Peter Bryant, chair of both the Development Partner Institute and Clareo.

Bryant, who spoke during the UN’s Climate Summit, is expected to detail the way in which the mining sector should reimagine itself in fundamental ways on how it extracts metals and minerals.

“While consumers and environmentalists increasingly demand clean energy, many do not realize that the raw materials needed to power their electric cars and trucks, smartphones and rechargeable batteries, all come from mining,” said Bryant, according to a press release flagging up the report.

Investment climate

A recent report by The Payne Institute for Public Policy at the Colorado School for Mines in the US suggested that Saudi Arabia is set to become a “global leader” in the mining sector due to its healthy investment atmosphere.

The report further added the Kingdom is on track to play a central role in the supply of precious minerals needed to power the transition to green energy in order to reach the goal of net zero carbon emissions.

In September, Abdullah Al-Shamrani, CEO of the Saudi Geological Survey, said that Saudi Arabia expects the value of its current mineral wealth to double from the previously estimated $1.3 trillion, due to the rising prices of valuable metals like gold, copper, and zinc.

According to Mohamed Ramady, a London-based economist and former professor at King Fahd University of Petroleum and Minerals, the Kingdom, through the privatization of Saudi Arabian Mining Co., known as Ma’aden, is “moving away from the old policy of mere mineral extraction to a policy aimed at creating a well-integrated mining industry over the next two decades.”

Ramady noted that foreign participation in the Saudi mining sector is considered essential due to the relative lack of experience in this field, in contrast to the petroleum sector where Saudi technical skills exist in all work areas and the FMF will underscore this international interest.

“There are already expressions of interest from many countries with rich mining experience to become involved with Saudi Arabia’s ‘hidden’ treasures. In a couple of decades, mining could be playing a role in the Saudi economy like the one oil played two decades ago,” Ramady told Arab News.

Ramady further added that the FMF will further reemphasize the strategic importance of the mining sector in Saudi Arabia’s economy.

According to Ramady, certain issues need to be solved effectively to further attract foreign investments in the mining sector of Saudi Arabia.

“While the new mineral code law addresses many problems faced by the industry, there are other questions about the timing and process of obtaining mineral concessions, the Saudi government’s right to a specified percentage of net profits, the state’s rights to participate in private mines management and clarification of the exact role of joint venture equity policies,” he said.


Saudi capital Riyadh to host World Expo 2030

Saudi capital Riyadh to host World Expo 2030
Updated 29 November 2023
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Saudi capital Riyadh to host World Expo 2030

Saudi capital Riyadh to host World Expo 2030
  • City was confirmed as the successor host to Osaka in 2025
  • Event expected to represent culmination of Vision 2030 and showcase Kingdom’s achievements

PARIS: Riyadh will host the World Expo 2030 after defeating challenges from South Korea and Italy for the prestigious event.
The Saudi capital was picked by a majority of 119 out of 165 votes by the member states of the Paris-based Bureau International des Expositions.
The secret ballot was carried out using electronic voting, and Riyadh was confirmed as the successor host to Osaka in 2025.

 

During the BIE event in the French capital, candidates presented their final Expo progress reports to member states and government-appointed delegates in an 11th-hour attempt to win votes.
The event is expected to represent the culmination of Vision 2030 and showcase the Kingdom’s achievements, with a particular focus on hospitality, tourism, and culture.
Saudi Crown Prince Mohammed bin Salman used a visit to Paris in June to showcase the Kingdom’s bid for the Expo, attending an exhibition held by the Royal Commission for the City of Riyadh that showcased Saudi Arabia’s rich heritage and cultural depth.
The bid began to draw support from high-profile French backers, with influential French senator Natalie Goulet saying that holding the expo in the Saudi capital would be “the culmination of Vision 2030.”
Saudi Foreign Minister Prince Faisal bin Farhan said: “I would like to thank the 130 countries that have already announced their support for the Kingdom’s bid. Distinguished dignitaries, you have all acted as indispensable partners providing insight, feedback, and support throughout the Kingdom’s campaign.”
He reaffirmed Saudi Arabia’s “unwavering commitment to collaborate with all nations to deliver an Expo built by the world for the world and to find new pathways for collective action and collaboration.”
The foreign minister said the Kingdom will “provide facilities packages of $348 million to a pool of 100 eligible countries.”
Arab News backed the Expo bid through a #WhyRiyadh campaign launched on Sept. 23 – the Saudi National Day.

 

Public figures from across various industries backed the campaign, including Saudi Minister of State for Foreign Affairs Adel Al-Jubair, Riyadh Mayor Prince Faisal bin Abdulaziz bin Ayyaf, and Frédéric Bedin, president of public relations agency Hopscotch.
Other high-profile supporters included the secretary-general of Alwaleed Philanthropy and UN Human Settlements Program’s Goodwill Ambassador, Princess Lamia bint Majed, the vice president of the Saudi Arabia Boxing Federation Rasha Al-Khamism, and Rob Sobhani, adjunct professor at Georgetown University.
Nonetheless, the campaign had started earlier, with the announcement of Paris’s support of Riyadh Expo 2030, reiterated during the crown prince’s visit to the French capital in June 2023, and his participation in the first Summit for Financial pact.
Commenting on the achievement, Princess Haifa Al-Mogrin, the Kingdom’s ambassador to UNESCO, said: “Riyadh Expo 2030 will be a global platform that accelerates progress, toward the most urgent challenges, health and education, climate and the environment, trade and investment, peace and prosperity for all.”
Why Riyadh? The city’s vibrant energy, with several megaprojects in progress, is placing sustainability and quality of life at the heart of every discussion.
The Expo 2030 location addresses these themes and is set to offer sustainable solutions for the cities of tomorrow, including clean mobility and renewable energy.
Creating green neighborhoods, with the key enablers being water and trees while reinstating the red sands desert that Riyadh is famous for, is an important example of how to build the “city of the future” while preserving heritage.
Saudi Arabia is raising the sustainability bar through its Green Riyadh Program, but it also aims to create connections, encourage people to use public transport, and increase the percentage of green space to improve air quality.

 

The program also seeks to increase green coverage from 1.5 percent to 9.1 percent, enhancing quality of life by creating open areas to improve public health, reduce energy consumption, and ultimately make Riyadh one of the 100 best livable cities in the world.
Seventy percent of the Saudi population is under the age of 30, and with a qualified labor force across industries fueling the race to 2030, there is excitement, energy, and enthusiasm in the first Arab capital to host the world event.
“Diriyah will be very famous by 2030, the city of Riyadh will be unrecognizable,” Jerry Inzerillo, CEO of the Diriyah Group, told Arab News during an event leading up to the Expo 2030 announcement.
“What Singapore did in 60 years, what the Emiratis did just in tourism in 30 years, the crown prince wants to accomplish that in 15 years,” he added.
In a symposium held in Paris earlier in November, the Royal Commission’s directors of landscape architecture, Lamia Al-Muhanna, and Nouf Al-Moneef, unveiled a color-coded map with planned pavilions, performance venues, support facilities, and an exhibition village.
Princess Haifa bint Mohammed Al-Saud, Saudi Arabia’s deputy minister of tourism, used the event to say: “Choosing Saudi, choosing Riyadh, is choosing the world.”
Delivering Expo 2030 will mean massive infrastructure developments in the Saudi capital, including an increase in hotel capacity by 70,000 new rooms.
The venue will be accessible via a newly developed metro linking Expo City to a reconstructed King Salman Airport, set to be one of the largest aviation hubs in the world at 57 million sq. meters.
The Kingdom’s new airline, Riyadh Air, will further increase the capital’s accessibility, with flights to 100 countries by 2025.
“As host, we will create a world-class site expo to enable you to build pavilions and experiences in a way that matches your national priorities and aspirations,” said Ghida Al-Shibl, a member of the Riyadh Expo 2030 team.
She said: “By Feb 2028, participant parcel and expo village will be open. We will fast-track all necessary requirements including imports, visas, and regulations.”
Al-Shibl said the Kingdom will launch a participant lab in 2025 that will run through 2030 as a 24/7 concierge service to support “your move, and a variety of housing options for teams and families, in addition to access to excellent healthcare and education and banking services.”


Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF

Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF
Updated 28 November 2023
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Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF

Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF

RIYADH: A total investment of $13.5 trillion is needed to ensure a carbon-neutral future by 2050, particularly in the production, energy and transport sectors, according to the World Economic Forum. 

In its report titled “Net-Zero Industry Tracker 2023,” WEF said that decarbonizing the industrial and transport sector is crucial to achieving a greener future, as these industries emit 40 percent of global greenhouse emissions. 

Roberto Bocca, the head of the Center for Energy and Materials at the WEF, said considerable investments are needed in the industrial and transport sector to achieve net-zero targets within the stipulated timeline. 

“Significant infrastructure investments are required, complemented by policies and stronger incentives so industries can switch to low-emission technologies while ensuring access to affordable and reliable resources critical for economic growth,” said Bocca. 

According to the report published in collaboration with Accenture, the $13.5 trillion in investments is derived from average clean power generation costs of solar, off-shore and on-shore wind, and nuclear and geothermal.

It also accounts for electrolyzer costs for clean hydrogen and carbon transport, as well as storage costs.

The report comes in the same week the 2023 UN’s Climate Change Conference is set to begin, which calls for “dramatic climate action” to close an “emissions canyon.” 

In addition to increasing capital expenditures to decarbonize existing industrial and transport asset bases, further investment is needed to build a clean-energy infrastructure, WEF added in the report. 

“It is imperative that action is taken soon to both decarbonize and improve energy efficiency; otherwise, unabated fossil-fuel demand in the key industry sectors, which have grown 8 percent on average the past three years, will increase very significantly by 2050,” added Bocca. 

Bocca highlighted that global collaboration among industrial leaders, embracing the usage of fuels like hydrogen, and implementing carbon capture, utilization and storage systems will help combat the issues surrounding emissions. 

The report added that carbon pricing, tax subsidies, public procurement and the development of strong business cases can support mobilizing necessary investments in the industrial and transport sectors. 

WEF and Accenture also stressed the need for public-private partnerships to ensure a sustainable future. 

“Collaboration between the public and private sectors is critical to a successful energy transition, and technology can be a key enabler in both managing affordable and reliable access to clean energy and addressing the incremental cost of decarbonization,” said Muqsit Ashraf, who leads Accenture Strategy.

He added: “Additionally, business model innovations can also help stimulate demand and accelerate industrial decarbonization – achieving net-zero objectives and a resilient energy transition.” 


CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 

CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 
Updated 28 November 2023
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CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 

CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 

RIYADH: The UAE and China have entered into a renewed currency swap arrangement facilitated by agreements that aim to advance technical and technological cooperation between the two nations. 

The understanding, which will renew the currency swap between the Central Bank of the UAE and the People’s Bank of China, bears a nominal value of 18 billion dirhams ($4.9 billion) over the next five years. This deal aims to enable the provision of liquidity in local currency into the financial markets. 

This agreement is expected to enhance the efficiency and effectiveness of settling financial and trade transactions between the two nations. 

Both banks also signed a memorandum of understanding to enhance collaboration with central bank digital currency development and strengthen cooperation between CBUAE and the Digital Currency Institute of the People’s Bank of China in the field of financial technology. 

The MoU will allow information to be shared on best practices and regulations pertaining to digital currencies and will support the implementation of cooperative undertakings, such as Project mBridge, a multi-central bank digital currency platform that facilitates quick and secure cross-border trade payments.

“The renewal of the currency swap agreement between our two countries and the MoU with our partners in China reflect the depth of the relationship between the UAE and China, embodying the Central Bank’s commitment to solidifying the partnership with our Chinese counterpart in financial, trade and investment fields,” Khaled Mohamed Balama, governor of CBUAE said. 

Additionally, the MoU includes cooperation in training and skills development for specialists on both sides and the exchange of bilateral visits to discuss matters of common interest. 

Last week, the Dubai Financial Market, in collaboration with Nasdaq Dubai and the Shanghai Stock Exchange, signed an MoU to advance joint products, including indices and electronic fund transfer initiatives. 

This step marks a significant development in fostering financial collaboration between exchanges. 


Saudi economy to rebound in 2024: Riyadh Capital

Saudi economy to rebound in 2024: Riyadh Capital
Updated 28 November 2023
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Saudi economy to rebound in 2024: Riyadh Capital

Saudi economy to rebound in 2024: Riyadh Capital

RIYADH: Saudi Arabia’s economy is expected to “rebound” in 2024, according to an analysis by Riyadh Capital.

The bank’s “Saudi Economic Chartbook” for the fourth quarter of 2023 outlines a projected continuation of solid growth for non-oil activities, facilitated by a progress-driven financial policy emphasizing an increase in investment spending, leading to the foreseen advancement in 2024.

For 2023, the document estimates non-oil activities to grow by 5.1 percent while projecting a 4.9 percent boost for 2024.

The bank notes that the Kingdom’s economy is expected to consolidate in 2023 due to oil production cuts in the last 12 months.

The decline in crude output in 2023 is expected to gradually reverse over the course of next year, leading the body to forecast an oil sector GDP contribution of 3.6 percent in 2024.

For 2023, the fiscal deficit is estimated at SR82 billion ($21.9 billion), corresponding to 2.1 percent of GDP.

Meanwhile, the 2024 deficit is projected to narrow to SR43 billion or 1.1 percent of GDP, primarily due to gradually higher oil and non-oil revenues.


Closing Bell: Saudi main index inches up to close at 11,101

Closing Bell: Saudi main index inches up to close at 11,101
Updated 28 November 2023
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Closing Bell: Saudi main index inches up to close at 11,101

Closing Bell: Saudi main index inches up to close at 11,101

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Tuesday, as it gained 20.18 points or 0.18 percent to close at 11,100.92.

The total trading turnover of the benchmark index was SR4.87 billion ($1.30 billion) as 108 of the listed stocks advanced, while 103 declined.

Saudi Arabia’s parallel market Nomu also performed well on Tuesday, with the index gaining 371.89 points or 1.53 percent, closing at 24,631.21.

The MSCI Tadawul Index too edged up 0.36 percent to close at 1,430.79.

The best-performing stock of the day was Wafrah for Industry and Development Co. The company’s share price soared by 5.36 percent to SR41.30.

Other top performers were Dr. Sulaiman Al-Habib Medical Services Group and Yamama Cement Co., whose share prices surged by 3.73 percent and 3.53 percent, respectively.

The worst performer in the main index was Alamar Foods Co., as its share price dipped by 3.90 percent to SR113.20.

The positive performance of Nomu was driven by Fad International Co., which debuted on the market today. The company’s share price surged by 30 percent to SR109.20.

In the parallel market, Future Care Trading Co.’s share price edged up by 10.10 percent to SR25.50.

On the announcements front, the Saudi exchange said that Armah Sports Co. will be listed and start trading on Nomu on Nov. 30.

Al-Moammar Information Systems Co., also known as MIS, revealed that it was awarded a contract worth SR81.6 million by the Kingdom’s Ministry of Justice to offer technical support.

In a Tadawul statement, MIS said that there were no related parties involved in the deal.

Meanwhile, Knowledge Tower Trading Co. announced that it purchased land that spans 1,148 sq. meters in Riyadh’s Malaz neighborhood at a value of SR6.3 million.

In a statement to Tadawul, the company said that the purchase would be financed through company sources and added that the land would be developed as an income-generating investment.