RIYADH: Saudi Arabia’s mining sector is offering major prospects for Australian equipment, technology, and services companies, according to a report released by the country’s Trade and Investment Commission.
Australian METS firms are now participating in a wide array of Saudi-based projects, including developing the NEOM smart city in Tabuk Province, battery metals for electric automobiles, and technologies that boost production efficiency and diminish emissions.
The commission attributed an increase in the participation of companies from Australia in these fields to a range of reforms around mining license applications and approvals by the Saudi Mining Investment Law.
Launched by the Saudi Ministry of Industry and Mineral Resources in 2020, the law creates a well-defined licensing system and raises investor confidence, according to the commission.
Moreover, the Kingdom’s mining sector entails a list of up to 38 initiatives that aim to create a robust and resilient mining industry built on the foundation of integrated value chains.
This paves the way for Australian METS firms with key opportunities across exploration, drilling, and land and air surveying.
There are also possibilities in mine infrastructure, mineral processing, mining consultancy, education, and training.
Over the next three to four years, more opportunities will emerge across digital technologies, quality and safety solutions, environmental services and mine safety equipment and services.
Mining is increasingly becoming a key element of Saudi Arabia’s economic development, after energy and petrochemicals, as the Kingdom seeks to wean its economy off oil production and exports.
Under the Saudi Vision 2030 framework, the mining and mineral contribution to the Kingdom’s economy is projected to surge 200 percent to hit SR240 billion ($63.9 billion) while creating as many as 219,000 jobs.
Saudi Arabia is expecting its mineral wealth to exceed earlier estimates of $1.3 trillion as the Kingdom plans to triple spending on the exploration of metals over the next three years.
Additionally, the mining opportunities in the Kingdom are set to receive a kick from the National Industrial Development and Logistics Program to encourage private sector investments worth an estimated SR1.7 trillion by 2030.
The investments will be utilized across four chief sectors: industry, mining, energy and logistics.