Essential mineral supply may approach demand by 2030, IEA report says 

Essential mineral supply may approach demand by 2030, IEA report says 
Electric vehicles and battery storage are the main drivers of demand growth, says the IEA (Shutterstock)
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Updated 13 July 2023
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Essential mineral supply may approach demand by 2030, IEA report says 

Essential mineral supply may approach demand by 2030, IEA report says 

RIYADH: The critical minerals market is experiencing unprecedented growth as clean energy demand fuels a substantial increase in investment, according to the latest report by the International Energy Agency. 

According to the report, the adoption of sustainable energy technology drives the need for minerals such as lithium, cobalt, nickel, and copper. 

Considering the latest advancements in technology and policy, the IEA has been revising its forecasts for future demand.

Most notably, key minerals will increase three and a half times to reach more than 30 million tons by 2030. 

“EVs (electric vehicles) and battery storage are the main drivers of demand growth, but there are also major contributions from low emission power generation and electricity networks,” said the IEA report. 

The need for minerals utilized in clean energy technologies, including solar panels, wind turbines, and electric cars, has grown steadily over the past five years. 

“From 2017 to 2022, the energy sector was the main factor behind a tripling in overall demand for lithium, a 70 percent jump in demand for cobalt, and a 40 percent rise in demand for nickel,” the report said. 

The market for energy transition minerals is anticipated to take center stage in the global mining industry. With a value of approximately $320 billion in 2022, the progressive field is projected to grow rapidly.  

In response, investment in critical mineral development rose 30 percent last year, following a 20 percent increase in 2021. 

“At a pivotal moment for clean energy transitions worldwide, we are encouraged by the rapid growth in the market for critical minerals, which are crucial for the world to achieve its energy and climate goals,” Fatih Birol, the IEA executive director, said. 

“Much more needs to be done to ensure supply chains for critical minerals are secure and sustainable,” he added. 

The IEA research suggests supply may be adequate to meet the government-signed national climate pledges if all scheduled mineral projects worldwide are established. 

The study also acknowledges the challenges and uncertainties that could impact supply sufficiency, such as project delays and technology-specific deficiencies. 

“On the manufacturing front, the industry is witnessing a surge in announcements to build new battery gigafactories,” said the report. 

According to the IEA’s Net Zero Emissions by 2050 Scenario, the aggregate of all proposed projects approaches the required scale.


Saudi PIF sets 7-year sukuk yield at 85 basis points above US Treasuries: Reuters

Saudi PIF sets 7-year sukuk yield at 85 basis points above US Treasuries: Reuters
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Saudi PIF sets 7-year sukuk yield at 85 basis points above US Treasuries: Reuters

Saudi PIF sets 7-year sukuk yield at 85 basis points above US Treasuries: Reuters
RIYADH: Saudi Arabia’s Public Investment Fund has set the yield for its seven-year dollar-denominated sukuk at 85 basis points above US Treasuries, according to a banking document reported by Reuters on Tuesday. The Kingdom’s sovereign wealth fund adjusted the yield from its initial guidance of 115 basis points earlier in the day, following strong demand that led to orders surpassing $17 billion. (With inputs from Reuters)

Saudi Arabia introduces clean diesel and gasoline fuels in Kingdom’s market

Saudi Arabia introduces clean diesel and gasoline fuels in Kingdom’s market
Updated 27 February 2024
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Saudi Arabia introduces clean diesel and gasoline fuels in Kingdom’s market

Saudi Arabia introduces clean diesel and gasoline fuels in Kingdom’s market

RIYADH: Saudi Arabia’s sustainability drive is gaining momentum with the Ministry of Energy announcing the launch of clean diesel and Euro-5 compliant gasoline in the Kingdom’s market. 

According to a Saudi Press Agency report, these newly introduced fuels offer lower emissions than traditional diesel and gasoline.

Like their predecessors, these energy sources are suitable for all means of transportation, and are also expected to contribute to preserving the environment and achieving the goals of the Kingdom’s Vision 2030, the report added. 

Euro-5 is a standard set by the EU to regulate the emissions of vehicles. 

Saudi Arabia is leading the Middle East and North Africa region in sustainable efforts through various undertakings, including the Saudi Green Initiative. 

The Ministry of Energy said that the introduction of these two fuels comes as part of the Kingdom’s efforts to reduce emissions and reach net zero in 2060 through the application of the circular carbon economy approach. 

The report added that the launch of these resources would encourage car manufacturers to introduce the latest energy-efficient vehicle technologies to the Kingdom. 

In January, multi-project developer Red Sea Global announced that it has become the first company in Saudi Arabia to use low-carbon biofuel in all its delivery trucks.

In a press statement, RSG revealed that the entire fleet of land vehicles is now powered by electricity or biofuel. 

The biofuel is produced from used cooking oil sourced within Saudi Arabia. The type of fuel RSG has adopted emits only 0.17 kilograms of carbon dioxide equivalent per liter, compared with 2.7kg CO2e per liter from regular diesel usage.


Johnson & Johnson MedTech begins direct operations in Saudi Arabia 

Johnson & Johnson MedTech begins direct operations in Saudi Arabia 
Updated 27 February 2024
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Johnson & Johnson MedTech begins direct operations in Saudi Arabia 

Johnson & Johnson MedTech begins direct operations in Saudi Arabia 

RIYADH: Saudi healthcare is poised to benefit from advanced medical interventions after Johnson & Johnson’s technology firm, J&J MedTech KSA, announced the launching of its direct operations in the Kingdom.  

The company provides high-tech medical and surgical equipment and aims to bring customers closer to a more streamlined experience, according to a statement.   

This move not only aligns with the firm’s commitment to enhancing medical interventions and improving clinical outcomes but also reflects the company’s ongoing investment in the future of Saudi healthcare, it added.   

Marzena Kulis, managing director of Johnson & Johnson MedTech for Middle East & Africa, said: “We remain deeply vested in Saudi Arabia and in contributing to the Vision 2030 to support in developing the healthcare sector, driving economic growth, nurturing local talent, and fostering innovation.”    

She added: “As an entity, Johnson & Johnson has been present in Saudi Arabia for nearly 40 years, putting the needs of patients, families, physicians, and nurses first, and functioning as advocates for the health of the Saudi community.”   

The senior executive added that as the company transitions into this new direct model, its esteemed partners will have fewer obstacles in providing the best care for their patients.

Moreover, Trad Al-Khelaiwi general manager of J&J MedTech KSA, highlighted: “As a company that is dedicated to fostering local talent, our direct operations are also aimed at creating more opportunities within the Kingdom and supporting the government’s Saudization efforts.”

He added: “In fact, since the start of the project, we’ve made 76 new hires — with our priority and majority being KSA nationals.” 

Furthermore, Al-Khelaiwi emphasized that this transformative shift would bring the customers closer to Johnson & Johnson’s quality standards and help develop the local healthcare market with international know-how.

“By taking this bold step, we are not only embracing the health goals of Vision 2030 and aligning with the National Health Transformation Program but also spotlighting the immense potential of local talent in driving innovation and progress,” Transformation Director at Johnson & Johnson MedTech Peter Lane underscored. 

In November 2022, Johnson & Johnson announced providing digital solutions that will shorten the time patients spend in hospitals.  

According to Marzena Kulis, managing director of Johnson & Johnson MedTech Middle East, the move was crucial in countries with lower bed capacity.  

“The digital solutions that we currently offer help to shorten the time of patients’ stay, so the capacity can absorb more patients, especially in the geographies where capacity is limited,” Kulis said in an exclusive interview with Arab News at the time.


Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister
Updated 27 February 2024
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Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

 

RIYADH: Saudi Arabia aspires to become one of the largest producers and exporters of clean energy, said Energy Minister Prince Abdulaziz bin Salman.

In an interview with the quarterly bulletin issued by the Saudi Association for Energy Economics, the minister said the Kingdom is capable of producing green and clean hydrogen at competitive prices.

Prince Abdulaziz said the Kingdom is focussing on all energy sources including solar, wind and green hydrogen as well as nuclear and geothermal.

This will help the Kingdom to reduce the consumption of liquid fuels in generating electricity and reaching the optimal energy mix, he added.

The minister cited the establishment of the largest green hydrogen production plant in NEOM as an example. The plant will have an annual production capacity of 250,000 tonnes by 2026.

Talking about the fluctuations in the oil market, he said the Organization of the Petroleum Exporting Countries has mechanisms in place to deal with global crude market challenges.

Despite highlighting Saudi Arabia’s energy transition plans, Prince Abdulaziz said the need for fossil fuels, especially oil and gas, will continue for decades as also indicated by several industry reports.

The minister added that Saudi Arabia is working to reduce carbon emissions, and that it has a program to replace liquid fuels.

He explained that the program aims to run industrial facilities to rely on natural gas or alternative fuels as well as building renewable energy sources.

Furthermore, Prince Abdulaziz highlighted how Saudi Arabia has quadrupled its current renewable energy capacity from 700 megawatts to 2,800 MW by the end of 2023, with more than 800 MW of renewable energy sources still under implementation and about 1,300 MW in various stages of development. On top of that, the Kingdom plans to produce 200 additional MW this year.

The energy minister also revealed that work is underway to build one of the largest projects to capture, transport, and store carbon dioxide with an annual capacity of up to 9 million tonnes by 2030 and 44 million tons annually by 2035.

He reiterated the Kingdom’s goal to reduce emissions to 278 million tonnes annually by 2030.


Closing Bell: Saudi main index rebounds to close at 12,602

Closing Bell: Saudi main index rebounds to close at 12,602
Updated 27 February 2024
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Closing Bell: Saudi main index rebounds to close at 12,602

Closing Bell: Saudi main index rebounds to close at 12,602

RIYADH: Saudi Arabia’s Tadawul All Share Index bounced back on Tuesday after recording declines on two days.

The benchmark index gained 69.79 points to close at 12,601.55 with an overall trading value of SR7.31 billion ($1.95 billion), with 169 stocks advancing and 52 declining. 

The Kingdom’s parallel market, Nomu, also gained 661.67 points to close at 26,254.28 and the MSCI Tadawul Index also edged up by 0.68 percent to 1,627.71. 

The best-performing stock of the day was Middle East Pharmaceutical Industries Co., also known as Avalon Pharma, which debuted on the main market on Tuesday. The company’s share price soared by 30 percent to SR106.60. 

Other top performers were Saudi Steel Pipe Co. and Batic Investments and Logistics Co., whose share prices surged by 9.93 percent and 9.87 percent, respectively. 

The worst performer of the day was Saudi Arabian Amiantit Co., as its share price slipped by 5.24 percent to SR29.85. 

On the announcements front, Arabian Centers Co., also known as Cenomi Centers, said that its board of directors approved issuing dollar-denominated sukuk under its international sukuk program. 

In a Tadawul statement, Cenomi Centers revealed that the amount and the terms of offerings will be announced later, depending on the market conditions. 

The lifestyle center operator added that the sukuk issuance is subject to the approval of the relevant regulatory authorities. 

Meanwhile, National Medical Care Co. revealed that it witnessed a net profit rise of 42 percent in 2023 to SR240.9 million compared to the previous year. 

The medical service provider said the rise in net profit was driven by higher revenue, gross profit, and interest income, along with lower sales costs and zakat charges. 

National Medical Care Co. added that the net profit for the fourth quarter of 2023 also witnessed a surge of 15 percent to SR63.5 million compared to the same period in 2022. 

Saudi Basic Industries Corp. also revealed its financial results for 2023 on Tuesday. 

The company, also known as SABIC, reported a net loss of SR2.58 billion in 2023, compared to a net profit of SR16.5 billion in 2022. 

In a statement to Tadawul, the company attributed the accumulation of losses to a decline in revenue due to a decrease in average selling prices and sales volumes.