By Web Desk
Saudi-U.S. Mining Deal in the Works
Saudi Arabia is preparing to negotiate a potential agreement with the United States focused on cooperation in mining and mineral resources, the Saudi cabinet announced via state news agency on Tuesday.
While specific details of the memorandum were not disclosed, the statement confirmed that Saudi Arabia’s Ministry of Industry and Mineral Resources will engage in discussions with the U.S. Department of Energy to finalize the terms of the pact.
The announcement comes just ahead of an official visit to Saudi Arabia by U.S. President Donald Trump scheduled for next week. The potential agreement aligns with Saudi Arabia’s broader Vision 2030 strategy, which aims to diversify the economy beyond oil dependency. Mining has emerged as a central pillar of this vision, with the Kingdom prioritizing the development of its vast reserves of gold, phosphate rock, and bauxite.
Recent geological surveys and discoveries have significantly boosted the Kingdom’s estimated mineral wealth. In 2023, Saudi officials nearly doubled the valuation of the country’s mineral reserves to an estimated $2.5 trillion, fueled largely by the addition of rare earth elements—critical components in modern technologies such as electric vehicles, wind turbines, and smartphones.
In parallel, Saudi Arabia’s state-owned mining giant Ma’aden is actively exploring international partnerships to strengthen its rare earths processing capabilities. According to an April report by Reuters, Ma’aden is evaluating collaboration with four global players: U.S.-based MP Materials, China’s Shenghe Resources, Australia’s Lynas Rare Earths, and Canada’s Neo Performance Materials.
Saudi Arabia’s international mining ambitions have also gained momentum through Manara Minerals, a joint venture between Ma’aden and the Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund. Manara Minerals made its first major move in 2023 by acquiring a 10% stake in Vale Base Metals, the $26 billion copper and nickel spin-off of Brazilian mining giant Vale.
As the global demand for strategic minerals rises, especially for use in green energy technologies, Saudi Arabia appears poised to become a critical player in the global mining supply chain—bolstered by partnerships like the one under consideration with the United States.