Saudi Arabia has announced its intention to discuss and sign a mining cooperation agreement with the United States. According to the Saudi state news agency, Crown Prince Mohammed bin Salman has authorized the Minister of Industry and Mineral Resources to engage with U.S. officials regarding a draft memorandum of understanding for cooperation.
Reportedly, the agreement focused on collaboration in the mining and mineral resources sector is expected to be signed with the U.S. Department of Energy. This move comes as Saudi Arabia accelerates efforts to become a global hub for battery and electric vehicle production. As part of its Vision 2030 plan to diversify the economy and reduce reliance on oil, the kingdom has been making substantial investments in the mining and industrial development sectors.
Saudi Arabia is also aiming to expand its presence in international mineral markets. In this regard, it has initiated talks with Chile’s state-owned mining company, Codelco, for potential joint investments in the copper sector. The kingdom is also exploring the import of lithium from Chile for domestic processing and has made strategic overseas investments through its mining investment arm, Manara Minerals.
Currently, Saudi Arabia imports most of its copper needs, but with the identification of vast domestic mineral reserves and ongoing exploration, it is looking to tap into these resources. The country is also assessing the rich mineral resources on the Red Sea seabed and has plans to process extracted materials at the Yanbu industrial complex.
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