‘Saudi Desalination’: Chinese Plants for Brine Mining Operational by 2026

One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)
One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)
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‘Saudi Desalination’: Chinese Plants for Brine Mining Operational by 2026

One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)
One of the factories under Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for brine water mining (Asharq Al-Awsat)

The General Manager of Commercial Services at the Saline Water Conversion Corporation (SWCC), Eng. Mohammed Al-Ghamdi, announced the start of operations for two new Chinese plants at the Ras Al Khair station in eastern Saudi Arabia.

These plants will focus on utilizing brine water and extracting minerals, with operations beginning in the first quarter of 2026.

The SWCC has made agreements with local and international companies to develop investment opportunities in brine mining.

These agreements were disclosed during the Future Minerals Forum in Riyadh last week.

As part of these agreements, two plants will be established in collaboration with Chinese partners in Ras Al Khair, targeting the extraction of essential minerals and salts from brine water, contributing to the circular economy outlined in “Vision 2030.”

Brine water, a byproduct of seawater desalination, contains high levels of salts and minerals like sodium chloride, magnesium chloride, potassium chloride, bromine, and others.

This approach helps reduce waste from seawater desalination and lessens reliance on mineral imports.

Al-Ghamdi emphasized the importance of brine water due to its high salt content.

He highlighted that extracting minerals and essential elements from it for the market is cost-effective and energy-efficient, presenting significant economic opportunities given the abundance of these waters.

Al-Ghamdi shared that investments in brine mining are projected to reach about SAR 8 billion ($2.1 billion dollars) by 2030, boosting the local economy.

He pointed out upcoming efforts to extract essential minerals like magnesium, potassium, and high-purity sodium chloride. These minerals are vital for diverse industries in the Kingdom.

Al-Ghamdi confirmed that the new plants will help produce elements like sodium and bromine within the Kingdom, reducing the need for imports

The goal is to meet 25%- 40% of the local market demand by 2030.



Oil Wavers as Trump's Colombia Sanctions Threat Rattles Markets

Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson
Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson
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Oil Wavers as Trump's Colombia Sanctions Threat Rattles Markets

Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson
Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson

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Oil market momentum was kept in check on Monday as prices fluctuated in and out of negative territory, with traders on edge despite the US pulling back from initial sanctions threats against Colombia, reducing immediate concern over oil supply disruptions.

Brent crude futures fell 36 cents, or 0.5%, to $78.14 a barrel by 1200 GMT. US West Texas Intermediate crude was at $74.27, down 39 cents, or 0.5%.

Both benchmarks oscillated between moderate gains and losses in early trading.

The US swiftly reversed plans to impose sanctions and tariffs on Colombia after the South American nation agreed to accept deported migrants from the United States, the White House said late on Sunday, Reuters reported.

Colombia last year sent about 41% of its seaborne crude exports to the US, data from analytics firm Kpler shows.

"Even if the sanctions didn't take place, this still creates nervousness that Trump will bully whoever needs to be bullied to get his way," said Bjarne Schieldrop, chief commodities analyst at SEB.

"Fundamentally, the market is surprisingly tight," said Schieldrop, referring to time spreads showing that the price of crude oil for quicker delivery is rising.

Gains were limited by Trump's repeated call on Friday for the Organization of the Petroleum Exporting Countries (OPEC) to cut oil prices to hurt oil-rich Russia's finances and help to end to the war in Ukraine.

"One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil ... That war will stop right away," Trump said.

Trump has also threatened to hit Russia "and other participating countries" with taxes, tariffs and sanctions if a deal to end the war in Ukraine is not struck soon.

Russian President Vladimir Putin said on Friday that he and Trump should meet to talk about the Ukraine war and energy prices.

"They are positioning for negotiations," said John Driscoll at Singapore-based consultancy JTD Energy, adding that this creates volatility in oil markets.

He added that oil markets are probably skewed a little bit to the downside, with Trump looking to boost US output and try to secure overseas markets for US crude.

"He's going to want to muscle into some of the OPEC market share; so in that sense he's kind of a competitor," Driscoll said.

However, OPEC and its allies including Russia have yet to react to Trump's call, with OPEC+ delegates pointing to a plan already in place to start raising oil output from April.

Both oil benchmarks registered their first weekly decline in five weeks on easing concern last week over potential supply disruptions resulting from the latest sanctions on Russia.

Goldman Sachs analysts said they do not expect a big hit to Russian production because higher freight rates have encouraged non-sanctioned ships to move Russian oil while the deepening discount on the affected Russian ESPO grade attracts price-sensitive buyers.

Still, JP Morgan analysts said some risk premium is justified given that nearly 20% of the global Aframax fleet currently faces sanctions.

"The application of sanctions on the Russian energy sector as leverage in future negotiations could go either way, indicating that a zero risk premium is not appropriate," they added in a note.

Elsewhere, Chinese manufacturing data on Monday was weaker than expected, adding fresh concerns over energy demand.