Bahrain is in talks with Nornickel to arrange Platinum Group Metals (PGM’s) refinery. The information is but to be confirmed because the potential deal is within the preliminary levels of debate. Qatar’s sovereign wealth fund has dedicated to investing $180 million in TechMet. TechMet is an funding automobile supported by the US Worldwide Growth Finance Company to assist safe responsibly sourced provide of crucial minerals and scale back dependency on China.
Oman is skilled and strategically positioned in manufacturing and processing capabilities of its copper sources. Based on the Ministry of Vitality and Minerals’ 2023 Annual Report, six Ultimate Funding Choices (FID) have been permitted for a number of initiatives, such because the Mazoon Mining copper ore mission within the Wilayat of Yanqul, situated in Al Dhahirah Governorate and in Wilayat of Al Khabourah; Al Ghuzayn copper mining mission, focusing on over six million tonnes of copper ore to be processed on the Wadi Al Jizzi copper focus plant.
State owned mining firm Minerals Growth Oman (MDO) alongside their public-private partnerships introduced its redevelopment plans at Lasil & Al Baydha Copper Mines in Sohar, Liwa. The mission includes a number of phases: mobilizing and developing mines, conducting open-pit mining adopted by beginning processing operations. Copper ore manufacturing from the Lasil mine is about to start this yr, with the Al Baydha mine anticipated to start out in 2026. The mission goals to supply round 800,000 tons of copper ore yearly. The preliminary section of the mission is to final 4 years, however ongoing exploration efforts could lengthen the manufacturing interval by discovering new reserves.
Australia-based mineral exploration and mining firm Alara Sources began copper focus manufacturing from the mine, operated by Al Hadeetha Sources (AHRL), a three way partnership firm 51% owned by Alara that has a capability of 1 million tonnes per yr. Alara expects the refinery to achieve full manufacturing capability inside the subsequent two to 3 months. The primary cargo, consisting of roughly 1,000 dry tonnes of copper focus, shall be delivered to Trafigura.
Trafigura will offtake all copper focus from the mine for interval of eight years from the beginning of manufacturing. In return, it supplied a $3.45 million financing facility to Alara to make use of funds to capitalize AHRL and to finish building of mission infrastructure. Compensation of financing interval begins from finish of September 2025 till finish of its maturity, June 2029. Oman’s institution for the copper mining worth chain has paved the way in which for exploration of different geological sources. This yr, Oman signed 5 mining pacts to extract potash and nickel ores.
Saudi Arabia’s mining increase catapulted after the revision of its authorized regime. By revising its mining legislation, the Kingdom facilitated an funding pleasant jurisdiction selling energetic exploration. A Saudi Arabian joint-venture firm owned on a 50-50% foundation by Royal Highway and MIDU Firm Restricted has been chosen because the successful bidder, as a part of a aggressive licencing spherical, for the Al-Miyah copper and gold tender space. The award consists of three exploration licences, situated within the Asir Province of the Kingdom of Saudi Arabia, 150 km northwest of the corporate’s Jabal Sahabiyah exploration licences. Saudi Arabia pursuits broaden past exploration and extraction.
Eyes on the midstream sector
As a part of the imaginative and prescient to self-sufficiency and diversification Saudi Arabia can also be directing its capital in direction of a midstream processing sector. Based on Saudi Arabia Business and Mineral Sources Minister Bandar bin al-Khorayef, the federal government is at the moment implementing a metal plate manufacturing facility with a greater than $4 billion funding in a metal plate mill advanced for the shipbuilding, petroleum, building and defence industries; and a “green-renewable” flat metal advanced that may provide the automotive, meals packaging, equipment and tools, and different industrial sectors. Each initiatives are already underway, and so is a $2 billion EV battery metals plant.
Saudi Arabia has gone so far as going downstream within the worth chain. In March 2022, Lucid motors introduced a $30 million lease settlement with developer Emaar Financial Metropolis for a plot of commercial land within the King Abdullah Financial Metropolis, close to Jeddah. The corporate that’s 61% owned by Saudi Arabia’s Public Funding Fund (PIF) mentioned that it goals to finish the Saudi manufacturing facility by 2025 or 2026 and construct up capability to 150,000 electrical autos per yr. Saudi Arabia has additionally signed a $5.6 billion cope with a Human Horizons to fabricate electrical autos as the dominion is trying to lead the Arab world in increasing financial ties with Beijing. This huge settlement will make Saudi one of many international hubs in electrical autos manufacturing and permits China to bypass European taxes on its electrical vehicles.
Native Saudi investor Ajlan & Bros, with United Kingdom-based Moxico Sources, plans to take a position $14 billion in growing mines and processing services by 2030. Ma’aden mining firm additionally acquired a 9.9% stake in Ivanhoe Electrical and established a three way partnership to probe for copper, gold, silver, and different metals in Saudi Arabia. Luxembourg-based Eurasian Sources Group has introduced its intention to take a position $50 million within the Saudi marketplace for large-scale, tech-enabled early-stage exploration for battery transition minerals. Other than native initiatives, Saudi Arabia mineral partnerships lengthen internationally.
In July final yr, Saudi Arabia’s mining agency Ma’aden acquired a 10% stake in Brazil’s base metals firm Vale, by means of Manara, its three way partnership with the PIF. Manara’s funding in Vale will assist it broaden extraction of copper and nickel. United States-based fertilizer producer Mosaic Co., mentioned that Ma’aden would purchase firm’s stake in a phosphate manufacturing three way partnership by issuing shares price about $1.5 billion. Ma’aden will concern about 111 million shares to purchase the 25% stake that Mosaic owns in Ma’aden Wa’advert Al Shamal Phosphate Co, a three way partnership between Mosaic, Ma’aden and Saudi Fundamental Industries. Saudi Arabia can also be investing closely in its port infrastructure, aiming to place itself as a central hub for the worldwide mining provide chain. The King Abdullah Port and the Jubail Business Port are increasing to facilitate the export of minerals and the import of mining tools, solidifying the Kingdom’s function within the sector.
Domestically this yr within the United Arab Emirates, KEZAD Group and UAE-based Titan Lithium have signed a 50-year land lease to construct a state-of-the-art lithium processing plant in Abu Dhabi’s Khalifa Industrial Space. With an AED 5 billion (equal to $1,361,285,000.00) funding, the plant will produce battery-grade lithium carbonate and lithium hydroxide, sourced from Zimbabwe. This improvement positions the UAE as a key participant within the international lithium market and helps its innovation and sustainable improvement objectives. The mission will create jobs, stimulate the native economic system, and align with the UAE’s dedication to growing electrical automobile adoption by 2050.
Internationally, the UAE was the primary Arab nation to determine overseas offers within the extractive sector, beginning with a bauxite mine in Guinea in 2013. This deal included growing an alumina refinery and the Kamsar port. Over the previous ten years, the UAE has considerably expanded its mining investments throughout resource-rich areas, significantly in Latin America and Africa.
United Arab Emirates does this in a different way than its Arab Gulf counterparts, by means of shopping for mining concessions reasonably than offering investments to others in return for the longer term provide of uncooked supplies. The vast majority of Emirati operations within the mining sector are joint ventures. UAE establishes an ecosystem of funding bringing collectively consortium companions in infrastructure, energy, well being and logistics. The UAE’s DP World and Abu Dhabi Ports Group are on the forefront of this effort. DP World has secured quite a few port concessions throughout Africa, together with within the Democratic Republic of Congo (DRC) and Tanzania. These ports are very important for transporting crucial minerals for important uncooked supplies utilized in electrical autos and renewable vitality applied sciences.
It’s price mentioning that the GCC Mineral Sources Committee has convened 4 occasions, specializing in key points similar to: integrating mineral business chains amongst GCC nations, mapping regional mineral investments, and defending geological heritage. The committee reviewed mining methods from varied member states and addressed different agenda gadgets geared toward advancing the mining and mineral sources sector throughout the Gulf Cooperation Council area. The importance of the latter assembly is that the mining sector is now a critical regional dialogue amongst Arab Gulf States indicating curiosity and ahead considering past hydrocarbon sources.
Mining within the Gulf area has emerged as a key space of alternative pushed by sturdy diplomatic and monetary assist by means of strategic investments, infrastructure improvement, and partnerships. The Arab Gulf states, significantly Saudi Arabia and the UAE, are intensifying their deal with the mining sector to safe their financial futures. Each the UAE and Saudi Arabia are influencing international useful resource administration and commerce by increasing their home and worldwide mining sector worth chains, positioning themselves as main gamers within the international market.
* Jamil Hijazi is a mineral economist and reporter who holds a Twin Grasp’s Diploma from the College of Dundee Centre for Vitality, Petroleum, Mineral Regulation, and Coverage (CEPMLP).