DAMMAM, 28 March 2004 — The privatization of the minerals sector will come in phases starting with mining, Petroleum and Mineral Resources Minister Ali Al-Naimi said.
He was speaking at a conference on investment in the sector organized by the Eastern Province Chamber of Commerce & Industry.
Al-Naimi said all current projects should be completed first. “Only then will the privatization process begin,” he said.
The Eastern Province is rich in mineral resources other than Petroleum. “Of the total licenses issued, 16 percent or 176 were in the Eastern Province, with a total investment of nearly SR1.5 billion,”
In the foreseeable future production of several minerals here will exceed domestic requirements, he said.
Exports would be one area where the private sector can step in.
New mining laws are awaiting Cabinet approval. “Once the new laws are approved, future strategy will be decided,” he said.
Saudi Arabia’s mining reserves are considerable. The Jalamid region alone has phosphate reserves of 313 million tons with a national total of 3.1 billion tons. The Kingdom also has vast manganese, iron, nickel, titanium, silica and calcium carbonate reserves.
During the question-and-answer session Al-Naimi also said the rapid fluctuation in oil prices was coming to an end and prices were stabilizing.
He said there were no moves on the part of OPEC to change its target price of $22 to SR28 due to the weak dollar.
The price for crude oil was not preconceived nor was it dictated by one or two countries. Instead it was decided based on the prevailing market situation.
Earlier, Eastern Province Governor Prince Muhammad ibn Fahd, who opened the conference, called on the private sector to invest in the mining sector.
He also appealed to foreign investors to explore joint ventures in the sector.
