RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman emphasized on Wednesday that achieving energy security and sustainability hinges on addressing the challenges related to the supply and extraction of critical minerals.
Speaking at the Future Minerals Forum in Riyadh, Prince Abdulaziz highlighted that the primary energy security challenges of the modern world no longer revolve around oil, but are now focused on gas, electricity, and mining.
“I believe that energy security, affordability, and sustainability depend on urgent, collective, and inclusive efforts to address critical minerals’ challenges,” the minister stated.
He went on to say, “Today, oil no longer poses an energy security challenge due to the availability of storage, developed infrastructure, and a mature supply chain, and the production of oil has become more perfected. Instead, energy security is now about gas, electricity, and predominantly mining.”
According to Prince Abdulaziz, one of the most significant obstacles in the global energy transition is meeting the rising demand for critical minerals and ensuring a reliable supply. The energy minister cautioned that the energy transition is inherently material-intensive, and the demand for these minerals could soon outpace their available supply.
“I believe that meeting the increased demand for critical minerals presents substantial challenges to ensuring a reliable supply. In oil, we have always said that we are the most stable and reliable supplier. In this one (critical minerals), there is no Saudi Arabi. There has to be many ‘Saudi Arabias,’” he added.
During his speech, Prince Abdulaziz also discussed the importance of sustainability as the world accelerates mining activities.
He pointed out that mining and processing currently contribute to 5 gigatonnes of carbon dioxide emissions, which accounts for 12 percent of annual global greenhouse gas emissions. He stressed that any significant growth in mining and processing would inevitably result in higher emissions unless innovative solutions are found.
The minister also noted the challenges posed by the geographical concentration of critical minerals and the long time required for their discovery and extraction. Drawing on sources such as the US Geological Survey and McKinsey, Prince Abdulaziz highlighted that the extraction and processing of critical minerals required for the energy transition are concentrated in just a few countries, creating significant dependency risks.
As countries race to secure access to these critical minerals, Prince Abdulaziz warned that such competition could drive up metal prices and increase energy costs, further complicating the global energy landscape.
The minister also underscored Saudi Arabia’s efforts to strengthen its mining sector, valued at an estimated $2.5 trillion, through localization and strategic partnerships with both regional and international companies.
“We will extract and utilize every ounce, gram, molecule, atom, and electron of our resources, and you are welcome to join,” Prince Abdulaziz concluded.
