Interview: Robert Wilt
What role does the mining sector play in economic diversification, and what more can be done to integrate local companies in downstream value chains?
ROBERT WILT: The mining industry is vital for the energy transition and prosperity in the Kingdom, and around the world. Mining opportunities in the Kingdom are valued at SR4.9trn ($1.3trn). To enable the development of the Saudi mining industry, the government in May 2022 announced plans to catalyse SR120bn ($32bn) in investment in the mining and minerals sector.
A core part of our mandate as the national mining company is to strengthen the local mining supply chain. Ma’aden has set clear targets for the use of Saudi small and medium-sized enterprises in large capital projects. Developing a more diverse domestic supplier base – with greater capacity and capability for onshore spending across industries – will strengthen the economy in the medium to long term. Ma’aden targets more than SR187.5bn ($50bn) in growth capital spending by 2040, which should support the economy through our Tharwah programme which aims to boost local content.
In 2021, 72% of our supply chain expenditure was on local providers and we aim to further increase this. Going forwards, it will be important for mining companies to integrate local suppliers and build local capabilities to ensure the advancement of the mining industry.
How do you evaluate opportunities for international investment in the mining sector?
WILT: The mining sector will be a major driver in attracting investment inflows, with significant untapped potential compared to more mature mining markets and our strong focus on exploration. With a vast pool of resources including phosphate, gold, rare earth minerals and copper, the Kingdom offers an opportunity for international investors to capitalise on a growing region in a critical industry. Many of Saudi Arabia’s unexplored minerals are essential to technologies that will power the energy transition and a sustainable future for all.
Which emerging technology solutions can have the greatest impact on Saudi Arabia’s mining and downstream processing operations?
WILT: Technology and digital transformation are essential for the advancement of the mining industry. Dronebased remote surveying and 3D geophysical artificial intelligence solutions can reduce the risk and cost of exploration intelligence. Advanced ore sorting and the purification of rare earth elements can positively impact mineral recovery. Robotics can support fully autonomous excavation, creating unmanned mines that are productive and safe. King Abdullah University of Science and Technology has developed a cost-efficient method to extract lithium from seawater, which could support energy-efficient lithium mining.
To what extent are global environmental, social and governance (ESG) trends influencing opportunities in the local mining industry?
WILT: The global shift towards the adoption of ESG principles has opened new growth avenues for the Saudi mining industry. The electrification of the global economy has led to an increase in demand for minerals used in batteries and energy storage.
In the short to medium term, the Saudi mining industry needs to find ways to extract minerals while lowering its carbon footprint. Ma’aden aims to achieve carbon neutrality by 2050, in line with Saudi Arabia’s 2060 net-zero goal. In June 2022 a memorandum of understanding was signed to explore the opportunity to build the world’s largest solar process heat plant in Ras Al Khair. The plant aims to reduce Ma’aden’s carbon emissions by over 600,000 tonnes a year, leading to a 4% drop in Ma’aden’s overall carbon footprint.
Initiatives like these will shape the future of mining in Saudi Arabia. We need to continue to capitalise on growth opportunities, while building a responsible, resilient local mining industry that works towards realising ESG goals in line with the Kingdom’s national agenda.
Read More from OBG
