Saudi group negotiates U.S. venture for Greenland minerals
Amid U.S. President Donald Trump’s declarations of interest in taking over Greenland, a Saudi investment group is in talks with New York-based Critical Metals Corp. to build a refinery for processing the massive Arctic island’s mineral resources.
Critical Metals announced on Thursday that it signed a non-binding term sheet to form a 50-50 joint venture with Saudi Arabia’s Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers. The facility would be linked to the U.S. company’s planned Tanbreez mining project in Greenland.
Under the plan, about a quarter of the minerals from the Tanbreez mine would be processed in Saudi Arabia, which is looking to extract more value from its own deposits of so-called rare earths. Critical Metals said the refined materials could be used in high-tech applications and distributed through U.S. defense supply chains.
If finalized, the deal would give Critical Metals guaranteed customers and likely ease its path to full financing for the project, which is estimated to cost $290 million to start production by next year.
“We see a strong opportunity to work closely with partners in the United States to responsibly develop and deploy these materials in support of next-generation technologies,” Abdulmalik Tariq Al-Qahtani, the Saudi firm’s CEO, said in a statement.
Saudi Northern Borders region yields growing mineral revenue
Saudi Arabia’s Northern Borders region is emerging as a key driver of economic growth and investment with its $1.2 trillion in mineral resources.
Its phosphate, coal, dolomite, limestone and silica sand deposits have made Saudi Arabia a leading mineral exporter.
The kingdom boasts five phosphate ore sites and has granted 29 active mining licenses, according to government statistics.
Mining and mineral exports have become a central part of Saudi Arabia’s shift from dependence on oil, which aligns with the government’s goal of diversifying the economy and deriving revenue from non-petroleum sources.
Saudi Arabia rolls out $182 million for mineral exploration
As Saudi Arabia seeks to reduce its economic dependence on oil, the kingdom has rolled out a $182 million package of grants aimed at encouraging mining companies to explore for new mineral resources.
The incentive program was announced on Wednesday by the Ministry of Industry and Mineral Resources and the Ministry of Investment.
Close to 50 minerals have been identified in the kingdom, including marble, granite and gold as well as ones crucial to the energy transition like copper and bauxite.
Saudi Arabia has an estimated mineral wealth of $2.5 trillion and is seeking to attract nearly $200 billion in investments in the mining sector by 2030.
