Once almost exclusively associated with oil and petrochemicals, Saudi Arabia is rapidly transforming its mineral sector into a third pillar of its economy, writes Dr Nicolaas C Steenkamp for African Mining, Incorporating Mining Mirror.

Bolstered by Vision 2030, the Kingdom of Saudi Arabia is accelerating exploration, consolidating operations and forging strategic partnerships as it seeks to unlock its vast mineral potential.

Bolstered by Vision 2030, the Kingdom of Saudi Arabia is accelerating exploration, consolidating operations and forging strategic partnerships as it seeks to unlock its vast mineral potential. Supplied by Dr Nicolaas C Steenkamp

Bolstered by Vision 2030, the Kingdom of Saudi Arabia is accelerating exploration, consolidating operations and forging strategic partnerships as it seeks to unlock its vast mineral potential. Ma’aden, the national mining champion, is leading the charge, but equally important are government reforms, inward investment and bold long-term bets on strategic minerals.

 

Exploration expansion under Vision 2030

A cornerstone of the Kingdom’s mining push has been its accelerated exploration programme. In late 2024, Saudi Arabia issued 11 new exploration permits to both domestic and international players, covering around 850km² across key regions such as Riyadh, Makkah and Asir. This move reflects the government’s ambition to unlock what it estimates to be trillions of riyals worth of mineral assets, from gold and copper to phosphate and rare earths.

In March 2025, further evidence of this exploration drive surfaced when Saudi authorities awarded exploration licences covering 4 788km², including to major names such as Vedanta (India) and a consortium including China’s Zijin Mining. The licences target mineralised belts rich in copper, zinc, gold and silver, including Jabal Sayid in Madinah and Al-Hajar in Aseer.

These exploration efforts are not just symbolic: they are backed by serious investment. According to the vice minister of Industry and Mineral Resources, exploration spending has soared, with more than SAR1-billion deployed in 2024 alone.

 

Ma’aden’s consolidation and project development

At the heart of the Kingdom’s mining transformation is Ma’aden (the Saudi Arabian Mining Company), which is majority-owned by the Public Investment Fund (PIF). Ma’aden is consolidating its portfolio while pushing new projects into execution.

  • Aluminium and Bauxite consolidation: In June 2025, Ma’aden announced that it would acquire full ownership of Ma’aden Aluminium Company (MAC) and Ma’aden Bauxite and Alumina Company (MBAC), previously held jointly with Alcoa. This consolidation gives Ma’aden full control over its aluminium value chain, a strategic move to control both upstream and downstream operations.
  • Ar Rjum gold project: In August 2025, Ma’aden made a final investment decision on the Ar Rjum gold mine. The mine will be open-pit, with a processing plant capable of 8 million tonnes per annum and is expected to produce 3.6 million ounces of gold over a 12-year life.
  • Resource extensions at Mansourah Massarah: Near-mine drilling at Ma’aden’s flagship Mansourah Massarah gold field (which produces about 250 000oz/year) has revealed further potential. The company now hopes to upgrade inferred resources and explore underground potential at key satellite deposits such as Jabal Ghadarah and Bir Tawilah.
  • Strategic minerals and base metals: Ma’aden’s Base Metals and New Minerals division is already active in copper, silver, zinc and new strategic metals. Notably, as part of its long-term ambition, Ma’aden aims to significantly scale copper production via its joint venture with Barrick (Ma’aden Barrick Copper Company, MBCC).

 

Strategic partnerships – critical minerals

The Kingdom’s strategy also hinges on partnerships. Some of the most significant moves include:

  • Ma’aden – Ivanhoe Electric JV: In 2023, Ma’aden took a 9.9% stake in Ivanhoe Electric and launched a 50:50 joint-venture to explore some 48 500km² of Saudi land – one of the most ambitious exploration programmes ever. This area is characterised by potential for copper, nickel, gold, silver and other strategic minerals.
  • Rare earths chain with MP Materials: In May 2025, Ma’aden signed an MoU with US based MP Materials to develop a vertically integrated rare-earths value chain in Saudi Arabia, from mining to separation, refining and even magnet production. This is a key part of the Kingdom’s ambition to become a global hub in strategic minerals.
  • Aramco–Ma’aden JV for lithium: Perhaps the most forward-looking move is a Heads of Terms agreement between Aramco and Ma’aden to explore lithium in the Kingdom. Aramco has identified concentrations of more than 400ppm lithium in its subsurface data and the collaboration could lead to commercial lithium production by 2027, contributing directly to energy-transition goals.

 

Sustainability, local content and talent development

Saudi Arabia’s mining push is not just about raw materials; it is also deeply tied to local economic development and sustainability. Under its Tharwah (“Wealth”) programme, Ma’aden has committed to substantial local content: the company estimates that by 2040, it will spend SAR55-billion on local goods and services, generating additional economic value and creating up to 47 000 jobs for Saudi nationals.

On the sustainability front, Ma’aden is increasingly using renewable energy in its operations. For example, its Al Baitha bauxite mine is supported by a solar + battery power project, reducing carbon emissions and aligning with the Kingdom’s push toward greener mining.

 

Growth ambitions and outlook

Saudi Arabia’s mining sector is being built for scale. According to the vice minister of Industry and Mineral Resources, the Kingdom has attracted up to USD32-billion in investments for mining projects, about one-third of its USD100-billion target under Vision 2030. Meanwhile, GDP contribution from mining is slated to grow from SAR17-billion in 2024 to SAR75-billion by 2030, if current trajectories hold.

At the corporate level, Ma’aden’s leadership has laid out a bold ambition to grow tenfold by 2040, moving from traditional mining into deeper value-added and strategic minerals, underpinned by innovation, partnerships and strong local capacity building.

 

Challenges and risks

Despite the optimism, risks remain. Exploring in difficult terrain, such as the Arabian Shield, poses geological and logistical challenges. Scaling downstream operations (rare earths refining or lithium production) requires not just capital but technical skill, regulatory clarity and long-term offtake. Moreover, attracting and retaining a skilled workforce remains critical: Ma’aden is investing in training and education, but that alone may not be enough to support its growth trajectory.

The ambitious timelines, for example, achieving commercial lithium by 2027, hinge on regulatory approvals, JV success and technology deployment. Any delay could slow down the broader Vision 2030 mining roadmap.

 

Mining: Strategic pillar

Saudi Arabia has shifted mining from a peripheral sector to a strategic lever of economic diversification. Underpinned by Vision 2030, the Kingdom is not only unlocking its domestic mineral wealth but building the institutional, technical and financial scaffolding to compete in global critical mineral markets. Ma’aden, in partnership with both homegrown and international heavyweights, is front and centre of this transformation.

If these ambitions play out, by the end of the decade, Saudi mining will look very different with deeper value chains, more local economic impact and a meaningful role in the global supply of metals critical to the energy transition.