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Decision-Makers Discuss in Riyadh Challenges of Global Mining Sector

The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
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Decision-Makers Discuss in Riyadh Challenges of Global Mining Sector

The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)
The Saudi capital will host next week an international conference to discuss the challenges facing the mining sector. (Ali Al Dhaheri)

The Saudi Ministry of Industry and Mineral Resources will organize on Jan. 11-13 in Riyadh, the International Mining Conference, which will be an opportunity for governments, companies and investors to discuss various issues and challenges facing the sector in the past two years.

Challenges of the Sector
In this context, the Global Mining Risk Survey 2021 report, issued by KPMG International, noted that the disruption of global supply chains posed a future challenge for the sector, adding that the cyclical fluctuations in global resource markets presented some difficulties for the mining sector.

With the market frequently unstable, the report said that mining companies must plan ahead, while boosting their use of scarce natural resources and pressing for cost solutions. It also stressed the need to increase focus on social responsibility programs.

According to the report, mining companies need to develop a more accurate view of the markets in which they operate, in order to chart the direction in which commodity prices are likely to head and make the right strategic decisions.

Sector Response
The reported noted that although the coronavirus pandemic has caused an economic recession in most countries of the world, it also led to higher stimulus spending in most key areas. This has increased demand for basic commodities, and prompted the mining sector to respond quickly to the unprecedented challenges posed by the pandemic, while ensuring the safety of employees and maintaining the security of supply chains.

The report indicated that commodity price fluctuations will force mining companies to constantly adjust their mine operations plans, in order to reach a much-needed value attraction, in the face of ever-changing market conditions.

Supply Chains
The problem of global supply chains continues to harm various industries, including mining, the report noted, which means that metal prices will rise in the next few months, and accordingly, the retail markets and the automobile industry will also be affected.

As for the means to solve the problem of supply chain disruptions, it will depend, to some extent, on the efforts to combat the spread of the coronavirus, especially with the emergence of the Omicron variant.

Nevertheless, the report pointed to signs of optimism as freight rates have decreased significantly in Asia and in freight lanes between the US West Coast, Asia and Europe.

Contrasting prices
According to Bloomberg’s analysis, in August 2021, the picture was not so bleak all the time for the mining sector, as iron was a big driver of profits for the largest producers, while the commodity hit a record level in the first half, at USD200 per ton.

Despite the recent decline in the prices of some commodities amid fears of a new surge of coronavirus cases, and with China’s move to limit the rise in costs, the prices of basic commodities for all categories are still registering record levels at the present time.

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IMF: Saudi Transformation on Track Supported by Deeper Reforms

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)
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IMF: Saudi Transformation on Track Supported by Deeper Reforms

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)

Saudi Arabia enters a new phase described as one of the most sensitive and influential in the course of its economic transformation, according to the International Monetary Fund (IMF), which said next year will be pivotal for the Kingdom thanks to deeper reforms implemented throughout the past years.

In a “country focus” released last month, Amine Mati and Yuan “Monica” Gao Rollinson, both in the IMF’s Middle East and Central Asia Department, showed that growth in Saudi Arabia has been fueled not only by investment, but also by people as private sector job creation has surged, particularly among women while unemployment rates reached record-lows.

The two economists said the resilience shown in 2025 underscores the progress already achieved in reducing the economy’s exposure to oil fluctuations.

They said that despite oil prices falling nearly 30% below their 2022 peak, the non-oil economy maintained strong momentum.

“This strength reflects the impact of Saudi Vision 2030 reforms—diversification gaps with emerging markets have narrowed, and the business environment now rivals that of advanced economies,” the two IMF experts said.

At the same time, Saudi Arabia is strategically shifting some of its spending priorities, with some of its investment focus moving toward AI and advanced technologies as part of its broader effort to diversify the economy.

The IMF paper said deeper reforms—including the steadfast implementation of recently enacted laws that ease access for foreign investors— will help foster an investor-friendly business environment and attract more private investment.

At the banking sector, it noted that the Saudi Central Bank’s continued vigilance in monitoring emerging risks will be critical in preventing vulnerabilities from building up.

“As conditions evolve, the central bank should continue to proactively deploy prudential measures to keep the financial system resilient,” it said.

Over time, deepening capital markets—so that companies can raise more financing through bonds and equity—will help ease pressure on banks, facilitate credit for small and medium enterprises, and create a more balanced mix of funding for the economy.

Looking ahead, Saudi Arabia faces a new test: how to sustain reform momentum in an era of potentially lower oil revenues without slipping back into the stop-and-go cycles that followed past oil booms, the two IMF economists said.

They said fortunately, Saudi Arabia approaches this challenge from a position of relative strength thanks to public debt-to-GDP ratios that remain low while foreign assets are still ample.

At the same time, the IMF noted that the sustainability of such progress relies on Saudi Arabia’s ability to anchor spending decisions within a consistent, multi-year framework will be vital for maintaining long-term sustainability.

The Fund showed that sustaining Saudi Arabia’s growth momentum will increasingly depend on two engines: a skilled workforce and a vibrant private sector.

Deeper reforms—including the steadfast implementation of recently enacted laws that ease access for foreign investors— will help foster an investor-friendly business environment and attract more private investment.

“The sovereign wealth fund can act as a complementary catalyst here by spurring new projects and partnerships, while making sure it leaves ample room for both domestic and international private investors to thrive,” the IMF paper noted.

Last October, the IMF had raised Saudi Arabia's economic growth forecast to 4% for 2026, supported by the expansion of non-oil activities and higher oil prices.

Meanwhile, the Saudi Finance Ministry forecasted real GDP growth of 4.6% in 2026, driven by non-oil activities and private-sector leadership.

Business

Iraq’s Oil Minister Says Talks Ongoing with Chevron on West Qurna 2 Oilfield

A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
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Iraq’s Oil Minister Says Talks Ongoing with Chevron on West Qurna 2 Oilfield

A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)
A Chevron logo at the Chevron building in Houston, Texas, US August 19, 2025. (Reuters)

Iraq's oil minister said on Saturday that talks were ‌ongoing ‌with ‌US ⁠major Chevron regarding ‌the Lukoil-operated West Qurna-2 field, the Russian company's ⁠largest foreign ‌asset.

Chevron ‍and ‍Exxon Mobil ‍are among potential bidders for Lukoil's overseas assets following US ⁠sanctions on the Russian oil producer.

Business

China’s Consumer Inflation Scales 3-Year High but Deflation Battle Far from Over

Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
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China’s Consumer Inflation Scales 3-Year High but Deflation Battle Far from Over

Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)
Chinese girls dressed in Qing Dynasty attire take pictures outside the Forbidden City in Beijing, China, Wednesday, Jan. 7, 2026. (AP)

China's annual consumer price inflation accelerated to a 34-month high in December, but the full-year rate slumped to the lowest in 16 years while producer deflation persisted, backing market expectations for more stimulus to shore up soft demand.

Imbalances in the $19 trillion economy have worsened over the past year even as growth is on course to meet Beijing's target of "around 5%" for 2025, buoyed by policy support and resilient goods exports.

US President Donald Trump's global trade war has added to persistently soft consumer demand, which has remained a drag on confidence and growth for years amid a prolonged property crisis.

The December consumer price index (CPI) rose 0.8% from the same month in 2024, National Bureau of Statistics (NBS) data showed on Friday, matching expectations in a Reuters poll and perking up from the 0.7% increase in November.

The rise was mainly driven by food prices, especially those of fresh vegetables and beef, which expanded 18.2% ‌and 6.9% respectively, Dong ‌Lijuan, a statistician at NBS, said in a statement. Pre-New Year holiday shopping ‌and ⁠supportive policies also helped ‌boost consumer prices, Dong added.

Chinese policymakers have repeatedly pledged to support a rebound in prices with monetary policy and have cracked down on excessive competition. They have also vowed to boost people's income to unleash consumption potential and better align the country's supply and demand.

Yet, the underlying demand impulse in the economy remains weak.

"Despite expectations of a recovery, inflation remains relatively low and should not preclude further monetary easing this year," said Lynn Song, ING's chief economist for Greater China.

Zichun Huang, China economist at Capital Economics, said the elevated headline CPI was not due to the government campaign to curb so-called "involution", adding that overcapacity and deflationary pressures will persist in the coming ⁠years in the absence of stronger demand-side measures.

WHERE HAS INFLATION GONE?

Indeed, for the entire 2025, consumer price growth was flat, well below the "around 2%" goal policymakers were ‌aiming for, a sign that stimulus measures, such as a consumer goods trade-in scheme, ‍have yielded only modest results in lifting sentiment and containing ‍deflationary pressure.

Prices of gold jewellery surged 68.5%, NBS data showed.

Core inflation, ‍which excludes volatile prices of food and fuel, rose 1.2% year-on-year last month, unchanged from November.

Goldman Sachs economists estimate that core price gauge excluding gold prices edged down in December from the prior month.

Annual growth in China's consumer prices has for years failed to meet policymakers' targets as the economy struggled to recover from the pandemic.

A prolonged property market crisis and a weak job market have contributed to lackluster household demand as well as overcapacity and price competition among producers.

On a monthly basis, CPI climbed 0.2% in December, compared with a 0.1% dip the previous month and a forecast for a 0.1% rise.

The producer ⁠price index (PPI) fell 1.9% year-on-year in December, remaining in a deflationary funk for more than three years even as it eased from a 2.2% drop in November. The gauge was expected to have fallen 2% in the Reuters poll.

NBS's Dong attributed the moderation in factory-gate deflation to both global commodity prices, including rising prices of non-ferrous metals, and policies for controlling capacity in key industries.

Capital Economics' Huang, however, said there hasn't been "any fundamental improvement in overcapacity."

"Prices of consumer durables continued to fall at a faster pace than during the depths of the global financial crisis, highlighting that the issue of excess supply remains unresolved in much of the manufacturing sector," she said.

For the whole year, PPI fell 2.6%.

Given the slowdown in economic momentum in the second half of last year, the market is watching for signs of additional government support measures in 2026 as top leaders have committed to pursuing a more proactive macroeconomic policy framework.

The central government has allocated 62.5 billion yuan ($8.95 billion) from special treasury bond proceeds to local governments to ‌keep funding the consumer goods trade-in scheme in 2026.

The government has also pledged to flexibly use monetary policy tools, such as cuts to interest rates and banks' reserve requirement ratio, to keep liquidity ample and spur growth.