Saudi Arabia is making tremendous advances to grow its mining sector
In Brazil the high level Saudi delegations continued discussions to strengthen bilateral ties and advance the mining sector in Saudi Arabia.
Saudi Arabia is making tremendous advances to grow its mining sector, which has an estimated $2.5 trillion in undeveloped mineral resources, with the goal of making mining the third pillar of its industrial division and boosting the national economy.
Bandar Alkhorayef, the Saudi Minister of Industry and Mineral Resource visited the world’s largest iron ore, Vale’s Carajas mines. He was briefed about the advanced technologies that are used in mineral extraction and processing. The technologies also include remote mine management and trucks without drivers.
Bandar Alkhorayef was accompanied by the Deputy Minister of Industry and Mineral Resources Khalid-Al-Mudaifer and many other industry leaders. The Saudi Minister of Industry and Mineral Resource discussed and engaged with the officials of Vale on exchanging expertise, information and knowledge. The discussions mainly involved mining within rainforests and nature reserves, and on forming effective partnerships with local communities.
Vale’s expansion goal in Saudi Arabia, there were conversations about prospective cooperation in developing the Carajas mines, which generate over 300 million tons of iron ore each year.
“I visited Vale’s Carajas mining complex in the Brazilian Amazon, one of the largest iron ore production sites globally, and explored their innovative methods in mineral extraction and processing,” Alkhorayef wrote in a Facebook post.
This plan and visit is a small part of Alkhorayef’s big trip to South America. Visiting Chile was a part of the trip in order to strengthen bilateral ties and explore mutual investment opportunities in various industrial sectors.
Al-Mudaifer in a recent Sao Paulo meeting expressed his views on how beneficial the recent cooperation with Brazil companies would be for the Saudi Arabian mining sector. The discussion meeting with the CEO of Vale Mining Co. Eduardo Bartolomeo and Al-Mudaifer, he explained and emphasised Saudi Arabia’s interest and commitment in emerging their mining sector by attracting investments and fostering international partnerships.
The main focus of discussions was on the investment opportunities for the mining companies in Brazil in the mining sector of Saudi. The major emphasis was on the adaptation of modern technologies to enhance production efficiency. They also aim at environmental sustainability and carbon neutrality in the next few decades.
During the visit, Brazil and Saudi Arabia agreed to strengthen their collaboration in oil, mining, infrastructure, and science, as well as increase bilateral trade. Brazil’s President Lula stated trade between the two countries had surged 450% in the previous six years. The two countries’ annual trade totaled $5.5 billion.
Eduardo Bartolomeo was impressed and praised the remarkable development in Saudi Arabia. Encouraging the economic resurgence by noting Vale’s support in particular in establishing the iron pelletizing project in Ras Al-Khair.
Al-Mudaifer also met with Petrobras CEO Magda Chambriard to discuss potential partnership in the manufacturing and petrochemical industries.
Saudi Arabia’s strategic acquisition of a 10% share in Vale Basic Metals Co., through Manara Minerals Co. (a joint venture between the Public Investment Fund and Ma’aden), demonstrates its commitment to strengthening international alliances.
Vale Mines plans on investing over SR4 billion ($1.06 billion) in order to build and develop a factory and logistics sector for iron pellet production in Ras Al-Khair Industrial City. The production is estimated to have a capacity of up to 4 million tonnes per year.
The rich mining resources and expanded expertise in Brazil proves to be a valuable partner for the Saudi Arabian mining sector. The country comes with a long history of mining with over 3000 mines established. Further considering the fact that Brazil is the world’s largest product of iron ore it acts as a catalyst for the growth of both the sectors of the countries.
For more than 50 years, the two countries have maintained strong bilateral connections, with major collaboration in the food, energy, and mineral sectors.