(Kitco News) - Saudi Arabia, which is among the world's top 20 largest gold holders, is strategically developing its precious metals sector and plans to participate in the refining supply chain, according to His Excellency Bandar Alkhorayef, the Kingdom's Minister of Industry and Mineral Resources.
Speaking at the Future Minerals Forum in Riyadh, Alkhorayef outlined the country's vision for gold, emphasizing its historical significance and future potential.
“Gold is the first mine that was opened by the...founder of this country,” Alkhorayef said, noting that the country has a long history with gold. He stated that the Kingdom continues to view gold as an important resource.
Refining and supply chain
A key part of Saudi Arabia's strategy involves developing its refining capacity. “We are now looking at how we can participate in the supply chain in the refinery,” Alkhorayef said. The goal is to establish a system that ensures the credibility and traceability of gold from Saudi Arabia.
This initiative includes working with investors to build a refinery capable of processing both domestic and international gold. The minister added, "this would allow Saudi not only to refinance gold from Saudi, but also from abroad."
Beyond its historical value, gold plays a strategic role for Saudi Arabia as the country seeks to diversify its economy and become a major mining hub.
The country has identified $2.5 trillion in mineral resources and is actively creating a favorable environment for investment in the mining sector. Alkhorayef emphasized that “we look to mining to be the third industrial pillar after oil and gas and petrochemicals.”
International collaboration
The Minister also stressed the importance of international collaboration, explaining that "without having clarity on international collaboration, we will always not capture the real value of mining."
Saudi Arabia aims to leverage its resources and strategic location by partnering with other countries for technology and investment, but also in the processing of minerals. "Sometimes we have the resources and we need the help of others for the technology, for the investment," said Alkhorayef. The country is also aware that "sometimes others have the resources," while "we have the ability to do the processing."
The Kingdom is also actively working to streamline the licensing process and tax regime to attract international investment. The Future Minerals Forum, which brought together 90 mining ministers, is a key element of this strategy.
The Kingdom is drawing on lessons from its oil production history and is focused on community engagement and responsible resource management, to ensure that mining activities benefit local populations.
Alkhorayef said that in the early days of oil production, "people saw the value of that resource and how we should be all together, protecting that resource and helping the country get the best out of it."
Special thanks to our sponsor, the Future Minerals Forum (FMF), for making this coverage possible. Visit https://www.futuremineralsforum.com/ to learn more.