Mineral development has significant implications for Saudi Arabia's economy and global energy transformation

Fuad Al Zayer, former head of OPEC Data Services and independent energy consulting consultant, published a commentary article in Arab News, stating that appropriate mineral mining is crucial for energy transformation. The full text is excerpted as follows:
1, The Middle East region is rich in mineral resources
The Gulf region and even the entire Middle East region are rich in mineral resources. In addition to traditional oil and gas, they are also rich in precious mineral deposits such as gold, silver, copper, and iron. For example, excluding China, nickel production in the Gulf region accounts for nearly 20% of global production, while phosphate ore production accounts for 10%. Among them, Saudi Arabia has become the largest mineral owner in the Middle East with its 600000 square kilometers of mineral resources in the western region. This mineral resource contains rich and precious minerals, including gold, silver, copper, zinc, chromium, manganese, tungsten, lead, tin, aluminum, and iron. Recently, a new mixed mine of gold, silver, copper, and zinc has been discovered in the Shat Taif area, attracting British Gold&Minerals Co. to invest and build factories in the area, thereby creating investment opportunities and new employment opportunities.
2, The Important Application of Mineral Development in the Transformation of New Energy
1. Battery. One of the key components of electric vehicles is the battery, and cobalt and lithium are the two main minerals used in the production of batteries, especially lithium, which is a key component of electric vehicle lithium batteries.
2. Wind turbine. Wind turbine generators rely on many key minerals, including cobalt, copper, manganese, and nickel, especially in areas with temperatures above 2 degrees Celsius. The demand for key minerals used in wind turbines will increase by 250%, mainly including aluminum, chromium, copper, iron, lead, manganese, molybdenum, neodymium, nickel, and zinc.
3. Photovoltaic power generation. In the next five years, the proportion of solar energy in renewable energy will exceed half, and the core elements of solar panel production are copper, nickel, and zinc.
3, The problems that need to be solved in mineral mining
1. Environmental requirements. Mining needs to ensure that mineral extraction and production are carried out in an environmentally friendly manner, in compliance with zero carbon emission standards. In recent years, many countries and companies have expanded their development areas to the deep sea. Before conducting actual mining, environmental protection work should be done first.
2. Protection of labor rights. The mining industry is a labor-intensive industry, and it is necessary to prevent human rights violations and harm to labor rights during the mining process. At the same time, it is also necessary to balance the distribution of benefits and avoid unfair practices that may cause resentment among the public.
4, Saudi Arabia has great potential for mining development
Currently, the valuation of sand mining is 1.3 trillion US dollars, and the 2030 Vision also lists the mining industry as the third pillar driving the development of the sand economy, following oil, natural gas, and petrochemical products. As the world moves towards clean energy, electric vehicles, solar energy, and wind energy will lead the trend, and mining plays an increasingly important role in this process, showing an exponential growth trend. Saudi Arabia's strong support for the development of the mining industry is not only beneficial to the Saudi economy, but also makes important contributions to the global energy transformation. In the next 10 years, Saudi Arabia's mining industry has broad prospects for development.