What is the Arabian Shield and why is Saudi Arabia keen to dig in?

The Arabian Shield is the exposed western part of Saudi Arabia’s ancient crystalline basement, formed between 880 million and 550 million years ago during the Precambrian period. This geological formation, which spans about 2.15 million square kilometers, is believed to contain a wide range of minerals, including gold, silver, copper, zinc, lead, chromium, nickel, tantalum, niobium and rare earths.

Saudi authorities estimate the kingdom has $2.5 trillion worth of mineral resources, and they are keen to develop these resources as part of their economic diversification strategy. The Arabian Shield is the focus of a joint venture between Saudi Aramco and Maaden, the Saudi Arabian Mining Company, to explore the 182,000-square-kilometer Transition Zone, also known as Zone 4.

This zone is located parallel to the Arabian Shield and is believed to hold significant mineral deposits. The mining sector in Saudi Arabia, as part of Vision 2030, is expected to play a major role in sustainability and economic growth. It is anticipated to attract investment, reduce dependence on foreign supply chains, and provide materials for the kingdom’s own industrial expansion and renewable energy projects.

However, there are challenges to overcome, including the development and training of local expertise and dealing with commodity price swings and water resources.