KSA inks nine new mining sector agreements worth USD 9.2 bn

Saudi Arabia secured nine agreements in the mining sector, attracting over USD 9.3 bn in investments, Reuters reports. The agreements — reached at the World Investment Conference — primarily target processing and manufacturing facilities. Here’s a rundown of what we know about the projects:

#1- Copper rod: India's Vedanta Copper International, a subsidiary of Vedanta, signed an MoU with the Industry and Mineral Resources Ministry to invest USD 2 bn in significant copper projects in the Kingdom, according to a statement (pdf). The projects include a 400k metric ton per annum (TPA) greenfield copper smelter and refinery and a 300k TPA copper rod project, all set to be established in Ras Al Khair Industrial City. The company plans to begin its investments with a 125k copper rod project set to begin production by 2Q 2026, with initial investments of USD 30 mn.

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#2- Zijin plans to invest between SAR 5 and USD 6 bn in a multi-phase zinc, lithium, and copper project. The first phase will involve building a zinc smelter capable of producing 100k TPA of zinc ingots and 200k TPA of sulphuric acid. The second phase includes a lithium carbonate mining facility with a production capacity of 60k TPA of battery-grade lithium carbonate, and the final phase will see the establishment of a copper refinery with an output of approximately 50k TPA of electrolytic copper foil and 200k TPA of copper cathodes.

#3- Australia’s Hastings Technology Metals is set to invest SAR 5.6 to 7.2 bn in a multi-phase project to build processing facilities for rare earth elements. This will include a hydrometallurgical processing plant, a solvent extraction separation facility, and a downstream processing facility, Reuters reported.

#4- A smelter and refinery: Vancouver-based Platinum Group Metals, in partnership with local firm Ajlan & Bros Mining, is exploring investments worth SAR 1.9 bn platinum into developing a group metals smelter and a base metals refinery. The smelter would process feedstock sourced from the company’s Waterberg mine in South Africa.

MORE EXPLORATION LICENSES ARE COMING-

The ministry also announced the list of local and international companies qualified to compete for five exploration licenses in the country’s mineralized belts at Jabal Sayid and Al Hajar, according to a statement. These areas hold promising reserves for metals, including copper, zinc, gold, lead, and silver.

The details: The mineralized belts cover a total area of 4.8k sq km. Three licenses are located in the Jabal Sayid belt, covering 2.9k sqkm and containing base and precious metals such as copper, zinc, lead, gold, and silver. The two other licenses are located in the Al Hajar site within the Wadi Shawas belt, spanning 1.9k sqkm and containing copper, zinc, and gold.

Who passed the prequalification? The qualified bidders included three consortiums and 11 companies, including Hancock Prospecting, Noring Ajlan & Bros, IGO, Silver Crop Metals, Vedanta, First Quantum Minerals, Golden Smelter, McQueen Mining, Grand Mining Limited, and K92.

Saudi’s mining sector is on a roll: Saudi’s Industry and Mineral Resources Ministry awarded exploration licenses for six exploration sites in Riyadh, Makkah, and Asir earlier this month. The sites cover an area of 850 sq km located in Riyadh, Asir, and Makkah regions, with reserves containing a mix of gold, silver, copper, zinc, and lead. The companies and consortiums awarded the licenses all committed SAR 75 mn in investments for the exploration efforts and an additional SAR 5 mn for community development near the sites. It also announced earlier in October it was accepting bids for seven new mining exploration licenses across Makkah and Riyadh, covering an area of nearly 1.1k sq km. Many of the tenders were part of the Exploration Enablement Program announced by the government earlier this year, which aims to incentivize critical minerals exploration by reducing early-stage risks for mining investments.

REMEMBER- Saudi Arabia has big mining plans: The country’s Industry and Mineral Resources Ministry launched a fresh incentives package worth SAR 685 mn earlier this year as part of efforts to expand the sector and tap reserves of gold, phosphate, and others. The goal is to attract local and foreign mining investors as part of a push to become a global hub for metals critical for the energy transition and become an EV manufacturing hub. The nation’s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016.

Ma’aden I solar plant enters the next phase of development: PIF-backed miner Ma’aden, US renewables tech manufacturer GlassPoint, and the Investment Ministry have kicked off the GlassPoint Ma'aden Technology Showcase (GMTS), a pilot project preceding full scale production at the USD 1.5 bn Ma'aden I solar plant, dubbed the world’s largest, according to a press release.

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More on the pilot: The project applies reflective mirrors in a glasshouse configuration to heat liquid salts that are then channeled to provide heat to a nearby Ma’aden plant. GMTS will begin by providing 1% of the steam required to power Ma’aden’s bauxite refinery at Ras Al Khair while leveraging new technologies to save on costs and weight.

The full project — Ma’aden Solar 1 — will provide up to 65% of the required steam for the refinery, offsetting some 600k tons of CO2 emissions a year, or the equivalent of taking 130k cars off the road. The plant is expected to have a 1.5 GWth output, mitigating 10% of Ma’aden’s annual emissions.

Not their first rodeo: GlassPoint signed an agreement with the Investment Ministry in October 2023 to build a solar tech manufacturing facility in the Eastern Province. At full production, the facility’s yearly output will enable the production of 5k tons of solar steam each day, or enough to offset 200k tons of emissions a year. The solar tech factory looks to provide supply chain resilience for Ma’aden I and other Saudi-based solar projects, while also supplying export markets.

Jordan is advancing a new electricity law (pdf) that is expected to attract significant investments in renewable energy, including hydrogen, Almamlaka reports, citing Fitch Solutions. The law aims to unlock greater independence in electricity generation, storage, and transmission to boost the kingdom’s energy supply in the long term. By 2033, it is anticipated that Jordan will generate 31.2% of its electricity from renewable sources.

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The details: The new legislation will enable companies to establish and manage their own energy storage facilities, with details on storage capacity requirements and licensing to be announced later. The law will also grant the ِEnergy and Minerals Regulatory Commission (EMRC) the authority to regulate the electricity sector and issue related licenses and permits in a bid to mitigate external shocks by increasing local renewable energy production, reducing the need for energy imports, and preventing future energy price hikes.

Household electricity generation gets a nod: The law also exempts those who install energy generators of one MW or less from the EMRC licensing requirement, effectively encouraging decentralization and in line with the country’s direction in supporting independent self-generation and transmission of electricity.

ICYMI- Jordan made a big push into its renewables’ household sector program: The Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) signed 20 agreements to partner with charitable and cooperative associations in installing 4k solar energy systems and 5k solar heaters around the country by the end of the year, according to a statement. The non-governmental partners would serve as financing windows for the 2024/2025 household sector program, which is supported by a 30% subsidy from the ministry.

SOLAR-

City Centre Bahrain has commissioned and signed a PPA for a 4.7 MW solar plant from Yellow Door Energy, according to a press release. The project will cover 32k sqm with over 8.6k solar panels installed on the rooftop, ground, and carports. It is expected to generate more than 7.3 GWh of clean energy in its first year of operations, reducing 3.3k metric tons of emissions.

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All part of a bigger plan: The solar project is part of a broader agreement reached in March 2023 between Majid Al Futtaim and Yellow Door to generate clean energy across 18 of its shopping malls in the UAE, Bahrain, and Oman. The partnership aims to build 42 MW solar projects to produce over 55 GWh of clean energy annually.

NUCLEAR-

Enec to conduct studies to identify nuclear tech for Adnoc: The Emirates Nuclear Energy Company (Enec) signed an agreement with Adnoc to conduct technical and economic assessments for identifying suitable nuclear reactor technologies for the state-run oil giant, according to a press release. The two companies will also conduct feasibility studies on the potential applications of excess heat from the Barakah Nuclear Energy Plant.

DECARBONIZATION-

Sharjah to reduce tourism + hospitality sectors’ carbon emissions: The Sharjah Commerce and Tourism Development Authority (SCTDA) has signed an MoU with Sea Going Green, the American University of Sharjah (AUS), and Manbat to support the decarbonization of the tourism sector, according to a press release. The collaboration aims to pilot solutions for food waste recovery and composting in the tourism and hospitality sector. The initiative will also leverage advanced technologies like blockchain-based carbon credit tracking to measure carbon reductions.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Al Futtaim supplies 40 EVs to Parkin: BYD’s rep. in the region Al Futtaim Electric Mobility has agreed to supply UAE’s biggest parking services provider Parkin with 40 BYD plug-in hybrid vehicles. The partnership will support Parkin in reducing the carbon footprint of its operational car fleet and will contribute to expanding EV infrastructure in Dubai. (Press Release)

US-based private equity firm TPG is reportedly “far along” in talks with Siemens Energy to purchase the wind energy assets of its Gamesa unit, Bloomberg reports, citing sources with knowledge of the matter. TPG is the frontrunner out of several other bidders, offering a possible sum exceeding USD 300 mn, but the rest — including the likes of JSW Energy and Inox Wind — are not out of the running just yet. Siemens is considering “all options,” including “potential partnerships,” a spokesperson for Siemens said. The assets include operation, maintenance, and manufacturing projects.

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Gamesa is going through a major overhaul: Siemens will lay off around 15% (4.1k jobs) of its wind turbine division Siemens Gamesa in an attempt to “adapt to lower business volumes, reduced activity in non-core markets, and a streamlined portfolio,” CEO Jochen Eickholt said in an internal letter to staff in May. The company took a big hit in 2023 after it found a “substantial increase in failure rates of wind turbine components.” The technical issue identified affected 15-30% of the more than 132 GW worth of turbines used in wind plants worldwide, costing the company an estimated EUR 1 bn.

Indian state mulls pause on business with Adani: India’s Andhra Pradesh State is considering the suspension of power purchase agreements tied to Adani Group on the back of a US indictment of its founder Gautam Adani for alleged bribes linked to its renewable projects, Reuters reports, citing government sources with knowledge of the matter. The state is turning to the Solar Energy Corporation of India to investigate the charges against the company and would be the first Indian state to take such action. The suspension is expected to be announced “very soon,” a government source told Reuters.

Vietnam’s experience with plastic recycling serves as a prime example of ineffectiveness in addressing the plastic pollution crisis, Reuters reports as plastic treaty talks continue in South Korea. Vietnam emerged as a major player in the USD 3.8 bn plastic waste trade after China bowed out in 2018, importing over 420k tons last year. Yet, the country is struggling to keep up with recycling, including its own plastic. Estimates suggest that one-third of imported plastic waste cannot be recycled partly due to difficulty treating it after mixing it with organic waste. The country is set to impose stricter rules for waste imports to limit the trade next year.

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REMEMBER- The UN is trying to tackle the problem: Plastic use could triple by 2060, and so is its waste, with half of that amount set to end up in landfills and less than a fifth being recycled. The UN talks hope to address the plastic waste crisis by agreeing on a combination of measures for waste reduction and management. Over the next few days, delegates from over 170 countries will be huddling to hammer down a final agreement from a 69-page draft agreement (pdf) that includes widely conflicting options.

Could bioplastics address the waste crisis? Bioplastics are emerging as a solution to the environmental impact of plastic waste, but a lot of hurdles need to be addressed for a maximized impact, the Financial Times reports. Derived from organic, renewable sources like corn, seaweed, and sugarcane, bioplastics are touted for their smaller carbon footprint and potential to biodegrade, reducing pollution. Start-ups like BioPak, Loliware, and Sparxell lead the charge, creating products like compostable takeaway packaging and biodegradable straws.

Not all bioplastics are nature-friendly: Many have molecules similar to fossil-fuel-based plastics and decompose into similar microplastics. Some contain the same toxic additives added to artificial plastic polymers, and many require industrial composting facilities, which are not widely accessible.

“Regulation vacuum”: The lack of clear definitions and regulations around terms like "bioplastic" and "bio-based" allows companies to make exaggerated claims about their products' environmental benefits. Experts argue that the focus should be on creating truly beneficial materials for nature rather than just less harmful than conventional plastics.

And scaling up would be key: Despite their potential, bioplastics still represent a tiny fraction of the overall plastics market, with production expected to rise from 2.2 mn tons in 2022 to 7.4 mn tons by 2028.

Solar hydroponics can boost sustainable agriculture: Researchers at the National University of Colombia’s (UNAL) Electrical Machines and Drives Research Group (EM&D) have unveiled a prototype that integrates solar panels with hydroponic cultivation towers, PV Magazine writes. The modular design of the towers — which can reach up to 2.5 meters in height — enables the cultivation of 80 plants per square meter and allows vegetables to grow using rainwater, optimizing space and resources.

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How does it work? The vertical system is designed to collect rainwater, making it highly resource-efficient for agricultural production. While it is primarily intended for vegetables like lettuce, chard, and spinach, the researchers note that the solar design can be adapted for other crops or applications. For instance, in Ubaté, a dairy municipality, solar panels could be installed where cattle are kept, allowing for simultaneous energy and milk production. To address the challenge of solar panel shadows reducing crop productivity, the team is testing “semi-transparent” panels that allow more light to reach the plants.

Why does this matter? Integrating solar with hydroponics is particularly beneficial in remote areas with limited access to the electrical grid. For instance, a greenhouse equipped with solar panels can harness sunlight to power photosynthesis-inducing ‘LED grow’ lights, water pumps, and weather control systems, ensuring continuous nutrient delivery and optimal growing conditions. This can also cut down electricity bills and emissions.

There are more benefits: Hydroponic systems also significantly save water, cutting its use by up to 90% compared to traditional soil-based farming. Hydroponic systems’s controlled conditions also minimize the need for chemical pesticides and herbicides, leading to healthier plants and higher yields. Solar hydroponic farms can be established in various locations, including urban rooftops and arid regions, providing fresh produce year-round.

Hydroponics are picking up regionally: Dubai-based vertical farming startup Crysp Farms — which secured USD 2.25 mn in a pre-series A funding round earlier this year — recently announced a partnership with veteran Alesca Technologies to deploy 500 AI-powered vertical farms across Mena over the next five years. Veggitech, another UAE-based agritech firm, was also considering expanding its hydroponic farming operations into Jeddah. Last year, Oman-based Nailesh Kanaksi Khimji (NKK) Investments signed an agreement with US agritech firm UrbanKisaan to boost its solar-based, vertical hydroponic farming in Oman, Saudi Arabia, and the UAE.