How Australia fits into Saudi Arabia’s mining ambitions

Saudi Arabia possesses significant mineral resources, estimating their value at $2.5tn, roughly double the $1.3tn valuation from 2016. The country's Comprehensive Mining Strategy, launched in 2018, aims to transform this geological potential into a thriving industry. This endeavor requires investment, technology, expertise, and processing capacity.

Australia has emerged as a prime partner in this venture, with a notable presence at the Future Minerals Forum in Riyadh in January 2026. Over 400 Australian delegates registered for the event, making it the country's most substantial attendance to date. Twelve Australian companies exhibited at the national pavilion, and agreements were also forged in mining services, education, and skills.

The rapid expansion of the Saudi mining sector, now targeting a $64bn contribution to GDP by 2030, has spurred commercial interest in the industry. Exploration spending surged to SAR1.05bn in 2024, up from SAR501mn the previous year and five times higher than in 2020. Active exploration companies increased from six to 226 over four years, with foreign investors now accounting for about two-thirds of mining investments.

Recent discoveries, such as an estimated 110 million tonnes of ore containing rare earth elements and uranium at Jabal Sayid near Medina, further bolster Saudi Arabia's mining prospects. However, the challenge lies in the downstream processing of these resources, which is often controlled by countries like China. Saudi Arabia is keen on developing a more extensive value chain to cater to its growing demand for processed materials, including lithium for electric vehicle production.

Australia's unique combination of resources and experience positions the nation as a valuable partner in this endeavor. By fostering a deeper partnership, both countries stand to benefit from increased investment, new markets, and the development of a more comprehensive mining industry within Saudi Arabia.