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Al-Mudaifer: Saudi Arabia Attracting Foreign Investment to Explore Critical Minerals in the Region

Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)
Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)
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Al-Mudaifer: Saudi Arabia Attracting Foreign Investment to Explore Critical Minerals in the Region

Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)
Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)

Saudi Arabia is exerting efforts to drive foreign investments into the Kingdom and surrounding region for the purpose of exploring strategic and vital minerals used in renewable energy, Khalid Al-Mudaifer, Saudi vice minister for mining affairs, told Asharq Al-Awsat.

According to Al-Mudaifer, international reports confirm the world’s need for these minerals by 400%, and the region represents 50% of future mineral resources.

Saudi Arabia is going through the best times to develop its wealth in a sustainable manner and use high technologies to take advantage of the future of mining, noted Al-Mudaifer.

The vice minister pointed to the geological significance of the Kingdom and its surrounding region, revealing that they offer opportunities worth SAR 120 billion ($32 billion). Both local and foreign investors are working on those prospects.

About 16,000 new mine licenses with investments estimated at SAR 100 million ($26.6 million) have been issued, affirmed Al-Mudaifer.

Al-Mudaifer’s statements were made at a presser held to announce the details of the 2nd Future Minerals Forum in Riyadh.

Under the patronage of Custodian of the Two Holy Mosques King Salman, the 2nd Future Minerals Forum is scheduled to be held between Jan. 10-12, 2023 at the King Abdulaziz International Conference Center in Riyadh, with the participation of more than 200 speakers from across the world.

Al-Mudaifer revealed that there is a great demand from local and international consortia from the private sector for global auctions for exploration and development of mining in the Kingdom.

Moreover, Saudi Arabia has received many requests for exploration licenses from foreign companies.

This influx came because of the success of the first edition of Future Minerals Forum, asserted Al-Mudaifer.

Al-Mudaifer also stated that the Forum will talk about the emerging mining area, talk about how to build a sustainable mining industry, and learn about the enormous geological potential of targeted areas, pointing out that Saudi Arabia seeks to lead the contribution to the development of the distinguished mining zone extending between Africa and Central and Western Asia.

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Russian Gas Flows via Ukraine for Last Days as Transit Deal Crumbles

A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo
A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo
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Russian Gas Flows via Ukraine for Last Days as Transit Deal Crumbles

A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo
A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo

Russia pumped gas on Monday to European customers via Ukraine for one of the last days before a key transit deal expires at the end of the year, marking the almost complete loss of Russia's once mighty hold over the European gas market.

Supplies of Russian gas via Ukraine are due to stop from the early hours of Jan. 1 after the current five-year deal expires. Kyiv has refused to negotiate a new transit deal as its war against Russia approaches the end of a third year.

Russia and the Soviet Union spent half a century building up a major share of the European gas market, which at its peak stood at 35%, but the war in Ukraine has all but destroyed that business for Gazprom, Russia's state-controlled gas giant.

Moscow has lost its share to rivals such as Norway, the United States and Qatar since the 2022 invasion of Ukraine, which prompted the EU to cut its dependence on Russian gas.

The slump in Russian gas supplies to Europe pushed gas prices to an all-time high, stoking inflation and raising the cost of living across the continent.

The end of the transit deal is unlikely to cause a repeat of the 2022 EU gas price rally as the remaining volumes are relatively small. Russia shipped about 15 billion cubic metres (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.

President Vladimir Putin said last week that there was no time left this year to sign a new Ukrainian gas transit deal, laying the blame on Kyiv for refusing to extend the agreement, according to Reuters.

The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under the control of Ukrainian soldiers - in Russia's Kursk region. It then flows through Ukraine to Slovakia. In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.

Most other Russian gas routes to Europe are shut, including Yamal-Europe via Belarus and Nord Stream under the Baltic that was blown up in 2022.

The only other operational Russian gas pipeline routes to Europe are the Blue Stream and TurkStream to Turkey under the Black Sea. Turkey sends some Russian gas volumes onward to Europe including to Hungary.

DISPUTES

Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss of the EU's gas markets.

Disruptions to gas supplies have also sparked numerous contractual and political disputes.

On Monday, Moldovan Prime Minister Dorin Recean ordered his government to start preparing for the possible nationalisation of gas company Moldovagaz, which is 50%-owned by Gazprom.

Gazprom had said it plans to suspend gas exports to Moldova from 0500 GMT on Jan. 1 due to unpaid debts. Moldova disputes it is in arrears for previous gas shipments and accuses Russia of destabilising the country, which Moscow denies.

Slovakian Prime Minister Robert Fico said on Friday that Slovakia would consider reciprocal measures against Ukraine such as halting back-up electricity supplies if Kyiv stops the gas transit from Jan. 1.

Ukrainian President Volodymyr Zelenskiy accused Fico on Saturday of opening a "second energy front" against Ukraine on the orders of Russia. Slovakia denied the accusation.

Gazprom said that it will send 42.4 million cubic metres of gas to Europe via Ukraine on Monday, a volume in line with recent days.

Reuters reported last month that Gazprom is making the assumption that no more gas will flow to Europe via Ukraine after Dec. 31 in its internal planning for 2025.

Ukraine could consider continued transit of Russian gas on the condition that Moscow does not receive money for the fuel until after the war, Zelenskiy said earlier this month.