(Kitco News) - Saudi Arabia is positioning itself as a major player in the critical minerals sector as the U.S. re-evaluates its approach to China’s dominance in the market, according to Dominic Raab, Head of Global Affairs at Appian Capital Advisory.
Speaking at the Future Minerals Forum in Riyadh, Raab, former UK Deputy Prime Minister, highlighted the changing geopolitical landscape and emphasized the need for the West to secure reliable access to critical minerals. "If you look at critical minerals… China has a domination of something close to 80 percent and upwards in a whole range of critical minerals and rare earths," Raab stated.
He pointed to Saudi Arabia's vast resources and its powerful sovereign wealth fund, the Public Investment Fund (PIF), as key assets in addressing the global supply chain challenge. "Saudi Arabia is very well placed right now… It’s got huge resources here – significant oil and gas, obviously significant critical minerals and rare earths capacity," Raab told Kitco News.
Raab outlined key trends shaping the critical minerals market, including the U.S. seeking to reduce its dependence on China for critical minerals, creating opportunities for other players like Saudi Arabia to step in.
He also highlighted that the critical minerals sector requires trillions of dollars in new investment to meet growing demand, and public-private partnerships are essential to unlock this capital.
Additionally, Raab pointed to lengthy permitting processes in countries like the U.S. and Canada are hindering the development of new mining projects and need to be streamlined.
Raab emphasized the need for the West to broaden its partnerships beyond traditional allies to secure critical mineral supplies. "The U.S. or…the EU or any of those traditionally Western countries…is not going to be able to fulfill the range and the depth and the volume of their critical minerals and rare earths needs…alone," he said. "They’re going to have to bring in from Latin America and Asia."
These comments come as the incoming U.S. administration under President-elect Donald Trump is expected to take a more assertive approach to China. While Trump has criticized NATO allies for not contributing enough to defense, Raab suggested that the need for critical minerals could foster greater cooperation between the U.S. and its partners.
"Even more in the critical minerals space, the case for working together is there," he noted.
Raab also highlighted the role of private investors like Appian Capital in driving the development of critical mineral resources. He pointed to the firm’s investments in 12 mining projects since 2017 – more than the five biggest mining companies combined. "I think that's where the, the real growth is going to be," he said.
Appian Capital is also working with U.S. policymakers to advise on the regulatory and fiscal policies needed to support the critical minerals sector. A new report by the firm and Securing America's Future Energy (SAFE) is expected to call for increased government support, expedited permitting, and a more agile foreign policy approach.
The Future Minerals Forum, which has drawn over 20,000 delegates, reflects Saudi Arabia’s ambition to become a hub for mining investment. With its strategic location, vast resources, and financial firepower, the kingdom is well-positioned to play a leading role in the global critical minerals market as the geopolitical landscape continues to shift.
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