Critical Minerals: Saudi Arabia’s Rise in Global Mining

A worker collects samples at a mine in Brazil (Reuters)
A worker collects samples at a mine in Brazil (Reuters)
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Critical Minerals: Saudi Arabia’s Rise in Global Mining

A worker collects samples at a mine in Brazil (Reuters)
A worker collects samples at a mine in Brazil (Reuters)

Critical minerals are no longer treated as simple raw materials traded on global exchanges. Amid increasing geopolitical competition, they have become a core element of national sovereignty, nearly as strategic as oil and gas.

The reality is increasingly clear: countries that secure access to these minerals are better positioned to protect their industrial and technological future.

As nations race to safeguard supply chains, the Future Minerals Indicators report points to a decisive shift in the sector. Highly globalized models are giving way to more regional and resilient systems designed to reduce risk and enhance security.

Within this evolving landscape, Saudi Arabia has emerged as a strategic force. By translating its geological potential into a credible investment environment, the Kingdom has entered the world’s top quartile for mining attractiveness, combining rich resources with far-reaching regulatory reform.

Released during the Future Minerals Forum in Riyadh, the report noted that demand for several critical minerals is rising faster than expected. This surge is driven by the energy transition, rapid digitalization, and the industries supporting them. The report also highlighted a restructuring of supply chains toward more regional models, shaped by geopolitical tensions and concerns over supply security.

Production Gains and Regulatory Reform

Jeffrey Lorsch, a partner at McKinsey & Company, said Saudi Arabia’s mining outlook is constructive and forward-looking.

In an interview with Asharq Al-Awsat, he stressed that the sector has undergone major changes in both production and regulation over the past decade.

Saudi Arabia has tripled its gold output while expanding steel and phosphate production. Lorsch said these gains were accompanied by regulatory reforms that fundamentally reshaped investor perceptions of the Saudi market.

The impact goes beyond headline figures. He noted that the Kingdom has moved into the global top quartile for mining investment appeal, reflecting improved governance, clearer regulations, and a stronger business environment.

Lorsch added that growth opportunities are concentrated in areas where Saudi Arabia holds clear competitive advantages, particularly phosphates. The Kingdom ranks among the world’s top quartile in phosphate competitiveness and cost efficiency, with additional room for expansion.

Titanium and Specialized Minerals

Lorsch also pointed to the potential to double steel production over the next 10 to 15 years, alongside promising prospects in specialized minerals such as titanium. Saudi Arabia has become one of the world’s leading exporters of titanium sponge, in addition to aluminum and other commodities.

Titanium plays a critical role in aerospace and advanced medical industries, valued for its rare combination of strength and light weight.

Globally, the report highlighted accelerating demand for minerals tied to advanced technologies. Lorsch said demand for gallium and germanium—key inputs in electronics—is growing faster than anticipated, tightening global supply-demand balances.

By contrast, some commodities, notably nickel, have seen rapid capacity expansion. Indonesia’s aggressive entry into the market through international partnerships has added substantial volumes to global supply in a short period.

Structural Challenges

Despite positive momentum, the report identified structural constraints that could limit growth. Lorsch described the shortage of skilled labor as one of the sector’s biggest challenges, particularly the difficulty of attracting qualified workers to remote sites or deep underground mines.

Infrastructure gaps remain a major hurdle, especially in regions such as South Africa, where transport and logistics networks struggle to support large-scale mining output. These shortcomings often prevent resources from being converted into sustained production.

Financing the Resource Gap

The Future Minerals Indicators report also examined the disconnect between abundant mineral resources and the capital needed to develop them. Lorsch attributed this gap partly to the traditional structure of exploration financing, long dominated by small firms raising funds in markets such as London, Toronto, and Australia.

While more exploration companies from the Global South have emerged in recent years, regulatory quality and infrastructure readiness still play a decisive role in determining whether resources evolve into viable projects.

More broadly, the report argued that change in mining extends beyond demand to the architecture of supply chains themselves, which are increasingly exposed to geopolitical risk and concentration. Governments are playing a more active role through industrial policy, investment support, and the localization of processing and refining, aiming to strengthen supply security and reduce dependence on single regions. This reflects a broader shift in how minerals are viewed—from tradable commodities to strategic assets with economic and sovereign value.

Artificial Intelligence and the Mining Cycle

On digital transformation, Lorsch remarked that artificial intelligence is reshaping the sector on two fronts. On the demand side, it is driving higher consumption of essential materials, especially copper, as electrification and digital infrastructure expand.

On the supply side, digital tools are improving efficiency and recovery rates, particularly in gold and copper mining. These technologies allow higher output, reduced capital requirements, and enhanced the value of mining-related jobs.

The report concluded that mining is entering a period of structural realignment, marked by rising demand, a stronger government role, and reconfigured supply chains. While challenges in financing, infrastructure, and human capital persist, the shift is opening strategic opportunities for countries that have strengthened regulation and improved investment appeal, at a time when a new balance between markets and states is taking shape in a sector expected to remain central to the global economy for decades.



Trump Says He’ll Place 25% Tariff on Autos from EU, Accusing Bloc of Not Complying with Trade Deal

Cargo containers line a ship at the Port of Oakland on Wednesday, Aug. 6, 2025, in Oakland, Calif. (AP)
Cargo containers line a ship at the Port of Oakland on Wednesday, Aug. 6, 2025, in Oakland, Calif. (AP)
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Trump Says He’ll Place 25% Tariff on Autos from EU, Accusing Bloc of Not Complying with Trade Deal

Cargo containers line a ship at the Port of Oakland on Wednesday, Aug. 6, 2025, in Oakland, Calif. (AP)
Cargo containers line a ship at the Port of Oakland on Wednesday, Aug. 6, 2025, in Oakland, Calif. (AP)

President Donald Trump said Friday that he will increase the tariffs charged on cars and trucks from the European Union next week to 25%, a move that could jolt the world economy at a fragile moment.

Trump said in the post that the EU “is not complying with our fully agreed to Trade Deal,” though he did not flesh out his objections in the post.

Trump and European Commission President Ursula von der Leyen had agreed to the trade deal last July. It set a 15% tariff on most goods.

Both the US and the EU had previously confirmed their commitment to preserving the trade framework, known as the Turnberry Agreement, which was named after Trump’s golf course in Scotland.

But the status of the 2025 deal was first cast into doubt after the Supreme Court this year ruled that the Republican president lacked the legal authority to declare an economic emergency and charge tariffs on EU goods.

The initial agreement had been a tariff ceiling of 15% on goods from the EU, but the Supreme Court ruling reduced that to 10% as the Trump administration launched a new set of import taxes based on other laws.

The Trump administration is in the middle of investigations on trade imbalances and national security risks to impose a new tariff regime, which could ultimately put the agreement with the EU in risk of violation.

The EU had said it expected the bilateral deal would save European automakers about 500 million to 600 million euros ($585 million to $700 million) a month.

The value of EU-US trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat.

“A deal is a deal,” the European Commission said in February after the Supreme Court ruling. “As the United States’ largest trading partner, the EU expects the US to honor its commitments set out in the Joint Statement — just as the EU stands by its commitments. EU products must continue to benefit from the most competitive treatment, with no increases in tariffs beyond the clear and all-inclusive ceiling previously agreed.”


Chevron's Upstream Strength Lifts First-quarter Earnings Past Estimate

3D-printed oil pump jacks and the Chevron logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration
3D-printed oil pump jacks and the Chevron logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration
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Chevron's Upstream Strength Lifts First-quarter Earnings Past Estimate

3D-printed oil pump jacks and the Chevron logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration
3D-printed oil pump jacks and the Chevron logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration

Chevron exceeded Wall Street estimates for its first-quarter earnings on Friday, as elevated oil prices linked to the US-Israeli war on Iran helped boost results from its upstream business.

The company reported adjusted earnings of $1.41 per share, well above the consensus estimate of 95 cents, according to data compiled by LSEG. Despite the strong beat, overall profit marked its lowest level in five years, partly due to unfavorable timing effects tied to financial derivatives.

Chevron's upstream segment, its largest business unit, generated $3.9 billion in earnings, up 4% year-on-year as higher oil prices led to increased revenue.

"Despite heightened geopolitical volatility and related supply disruptions, Chevron delivered solid first-quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution," CEO Mike Wirth said in a statement.

The conflict with Iran, which began on February 28, significantly disrupted global energy markets. Shipping through the Strait of Hormuz was nearly halted, tightening supply and pushing oil prices up as much as 50% during the reported quarter.

Net income for the January-March period totaled $2.2 billion, down from $3.5 billion a year earlier. However, Chevron's exposure to the Middle East turmoil remains limited, accounting for less than 5% of its total production.

DOWNSTREAM RESULTS IN THE RED

In contrast, downstream operations swung to a loss of $817 million, from a profit of $325 million last year. This decline was largely due to accounting mismatches from derivative-related timing effects, which are expected to start reversing in the next quarter.

Larger rival Exxon also disclosed a similar hit from timing effects.

Chevron anticipates that paper positions worth about $1 billion will close and result in profit in the second quarter, Chief Financial Officer Eimear Bonner said in an interview.

Excluding timing effects that are typical in a volatile environment, she said Chevron's underlying business was strong.

"We can see cash flow growing, we can see earnings growing, and all our plans are on track."

The company said it could see additional timing effects if oil prices continue to rise and further "unwinds" when prices fall.

LIMITED MIDDLE EAST EXPOSURE

Chevron has lower production exposure to the Middle East compared with its peers. Production in the US remained robust, exceeding 2 million barrels per day for the third consecutive quarter, the company said.

First-quarter volumes declined slightly to 3.86 million barrels of oil equivalent per day compared with the previous three months due to downtime at the Tengiz field in Kazakhstan after a fire.

Free cash flow also swung to a negative $1.5 billion due to lower operating cash flow. On an adjusted basis excluding impacts to working capital, the metric was still down from the year-ago quarter.

Bonner reaffirmed the company's target of achieving at least 10% annual growth in adjusted free cash flow through 2030. During the quarter, Chevron paid $3.5 billion in dividends and repurchased $2.5 billion worth of shares. The buyback figure was lower than the previous quarter, though Bonner said the company continues to target full-year buybacks between $10 billion and $20 billion.

Chevron's results were strong, though some investors may be disappointed by the lack of buyback increases, said Biraj Borkhataria, an analyst with RBC Capital Markets, in a research note. He added that stronger cash generation this year could help lift repurchases in the second quarter.

The company said that capital expenditure in the first three months of 2026 was higher than last year, partly due to investments tied to its Hess acquisition, although this was offset by reduced spending in the Permian Basin.

Chevron shares were up less than 1% in pre-market trading.


Gold Heads for Weekly Loss as High Oil Prices Feed inflation worries

A jeweller holds gold bars in Cairo, Egypt, March 9, 2026. (Reuters)
A jeweller holds gold bars in Cairo, Egypt, March 9, 2026. (Reuters)
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Gold Heads for Weekly Loss as High Oil Prices Feed inflation worries

A jeweller holds gold bars in Cairo, Egypt, March 9, 2026. (Reuters)
A jeweller holds gold bars in Cairo, Egypt, March 9, 2026. (Reuters)

Gold prices fell more than 1% on Friday and were headed for a weekly loss of a similar magnitude, as elevated oil prices continued to fan inflation concerns that would discourage central banks from cutting interest rates.

Spot gold was down 1.1% at $4,573.33 per ounce at 1149 GMT, and on track for a weekly loss of 2.8%. US gold futures for June delivery fell 1% to $4,585.20.

"Gold remains negatively correlated to oil in the short term, as it impacts interest rate expectations," said UBS analyst Giovanni Staunovo.

Iran said on Thursday it would respond with "long and painful strikes" on US positions if Washington renewed attacks, reiterating its claim to the Strait of Hormuz, Reuters reported.

Brent crude prices have touched double the levels seen at the start of the year, raising concerns about a global economic slowdown and higher inflation as fuel prices surge.

US inflation accelerated in March as the war raised gasoline prices, reinforcing expectations that the Federal Reserve could keep interest rates on hold well into next year.

The European Central Bank and the Bank of England left interest rates unchanged on Thursday, following similar decisions this week by the Fed and the Bank of Japan.

Gold, traditionally seen as a hedge against geopolitical uncertainty and inflation, can come under pressure in a high interest rate environment as it loses its appeal to yield-bearing assets like US Treasuries.

However, Staunovo said UBS retained a constructive outlook over the next six to 12 months.

"Uncertainty surrounding upcoming (US) midterm elections, expectations of a weaker US dollar over time, and declining real interest rates (as the Fed cuts) will likely support investment demand alongside continued central bank demand," he said.

He added that these factors could drive prices towards $5,900/oz by late 2026.

Spot silver prices fell 0.3% to $73.53 per ounce, platinum was down 0.5% at $1,975.65, and palladium lost 0.1% to $1,522.18.