RIYADH: Saudi Arabia is taking significant steps in the production of green iron to supply to other industries and for export, an official said.
Khalid Al-Mudaifer, vice minister of mining affairs at the Ministry of Industry and Mineral Resources, said in an interview with Al-Ekhbariya that the project is set to “see the light soon in the Kingdom.”
Al-Mudaifer stated that the Public Investment Fund’s acquisition of 100 percent shareholding in the Saudi Iron & Steel Co., also known as Hadeed, from Saudi Basic Industries Corp. earlier this month will lead to the creation of the largest iron industry entity in the Arab world.
Al-Mudaifer further noted that Saudi Arabia produces iron with the lowest carbon emissions globally.
The Kingdom has an estimated 780 million tons of iron ore reserves, ranking it 20th globally in terms of iron and steel production capacity and the fourth-largest producer of steel utilizing environmentally friendly direct reduction technologies.
The industry and construction sector in Saudi Arabia have witnessed substantial growth driven by mega-projects exceeding $1 trillion in expenditure. Over the next decade, it is anticipated that the sector will invest more than SR27 billion ($7.2 billion), underscoring the imperative need for a robust and expanding iron industry, Al-Mudaifer explained.
To support the Kingdom’s iron strategy, he said the Kingdom requires major investments exceeding SR35 billion by 2030. This underscores the necessity of establishing a viable and robust entity backed by the PIF.
The vice minister emphasized that the iron sector will be a vital pillar of the mining industry, ensuring Saudi Arabia becomes one of the largest iron producers in the Middle East and on the global stage.
When the PIF acquired Hadeed, the company also announced its acquisition of a 100 percent stake in AlRajhi Steel Industries Co. from Mohamed Abdulaziz AlRajhi & Sons Investment Co. in exchange for newly issued shares in Hadeed.
In a separate statement to Tadawul, SABIC disclosed that the deal is valued at a total of SR12.5 billion, equivalent to $3.33 billion.