‘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 Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.