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According to a Saudi minister, the world is facing a shortage in critical mining supplies. Saudi Arabia can play a significant role as its mining sector is integrated into the industry, logistics, and other sectors including energy transition.
Khalid Al-Falih, Kingdom’s Minister for Investment, stated that the main challenge facing the mining sector is a lack of supply.
He said, “We live in a world in which there is an expected increase in demand for crucial metals that will become key to the electrification of the global economy,” and also noted that there is a critical shortage.
Al-Falih said that Saudi Arabia could be a source of solutions for the energy sector because it has all the enablers needed, including the most advanced laws to improve operations in the mining sector.
He stated that Saudi Arabia is the “world’s safety valve” for energy. This includes conventional, unconventional, renewable, and renewable energies as well as any emerging technologies used in the mining sector.
Minister Al-Falih noted that all necessary enablers have been brought together by the Kingdom in the mining sector. Al-Falih stated, “We have the energy solution. We have the location. We have the financing. And we have the best-in-class regulations in the world.”
Minister revealed that Saudi Arabia’s mine sector places a strong emphasis upon environmental, social, and corporate governance principles. The Kingdom has one of the highest ESG scores with low carbon intensity in fossil fuels and increasing use of renewables, including hydrogen, to reduce emissions while processing the metals.
He also pointed out that Saudi Arabia provides all the necessary business environments for private-sector companies to invest in the Kingdom.
Saudi Arabia provides regulatory and ecosystem enablers as well as some financing through the development fund. Al-Falih stated that we are truly unleashing the power and potential of the private sector.