Saudi Arabia, rich in $2.5 trillion worth of minerals, is focusing on Africa’s mineral wealth to support its Vision 2030 goal and fuel its green energy transition.
This vision includes becoming a global center for mineral refinement and processing, with a keen interest in African resources.
Khalid al-Mudaifer, the Vice Minister for Mining, outlined to the Semafor outlet Saudi’s intent to invest in African nations lacking essential infrastructure.
He pledged support for refining minerals and overcoming challenges like insufficient energy and skilled labor.
Saudi Arabia aims to draw key industries, such as electric vehicle and battery manufacturers, to its mining sector.
It has initiated mining partnerships with four African countries and discussed securing critical metals with the U.S. for energy transition. The kingdom plans to invest $15 billion in global mining stakes.
The Future Minerals Forum, attended by delegates from over two dozen African countries, showcases Saudi Arabia’s expanding mining efforts.
Mudaifer stressed the shift from colonialist mining practices towards investments that foster local development.
African countries are moving to process minerals locally to capture more economic value.
Zimbabwe has banned raw lithium exports, promoting local processing, while the DR Congo seeks to enhance its position in the battery supply chain.
The Africa Finance Corporation is considering investing in a Zambian cobalt sulfate refinery.
Alternative to traditional mining giants
Saudi Arabia offers African nations an alternative to traditional mining giants and Chinese investors, potentially strengthening their negotiating power.
Regardless of market fluctuations, Riyadh’s long-term investment strategy presents a viable option compared to China.
Saudi’s mining projects could also indirectly serve U.S. interests, following discussions about Riyadh developing mining capacities in Africa with U.S. preferential purchasing rights.
This strategy could help the U.S. access essential minerals while managing investment risks in regions with corruption and ESG concerns.
Yet, achieving these ambitious goals faces hurdles, including the complexities of building infrastructure and the shortage of skilled labor in both Saudi Arabia and its African partners.