As part of its Vision 2030 to diversify the economy away from a dependence on oil, Saudi Arabia has invested considerably in building the Ras al-Khair minerals industrial city, highlighted as one of the largest industrial cities specialising in minerals globally, spanning a total industrial area of about 184 km².

Located about 100 km from Jubair, the Ras al-Kahir industrial city is located in the eastern province of Saudi Arabia and is managed, promoted and developed by the Royal Commission for Jubail & Yanbu (RCJY).

This commission is an entity of the Ministry of Industry and Mineral Resources. It contributes to the country’s National Industrial Development and Logistics Programme to achieve the goals of Vision 2030 related to transferring and localising industries and technologies, as well as creating jobs.

The city’s industries include State-owed mining company Ma’aden’s integrated aluminium complex, Ma’aden’s integrated fertiliser production complex and the King Salman International Complex for Maritime Industries and Services.

The city aims to be environmentally, socially and economically beneficial.

With a cluster of carbon, zinc, steel, aluminium and phosphate, the city is posited to provide a competitive advantage, as well as engender sustainability, with waste materials from some industries being used as raw material input for others.

Other environmental initiatives include integrated waste facilities, energy efficient plants, a power plant that provides energy for industrial activities as well as to the national grid and a water desalination plant.

During a media visit to key sites in the city this month, it was highlighted that there are also plans to implement low-carbon hydrogen to power the city’s industrial activities, with this currently in the design phase.

The social element entails the city offering a full cohort of lifestyle services, with healthcare, accommodation, education and transport available.

Economically, the city aims to be a one-stop shop for investors, with infrastructure implemented through an investment of SR32-billion, including the environmental ones alluded to above, as well as road, rail and port access. It also offers several tax incentives.

Mining Weekly was told that the city has already contributed over SR20-billion to the country’s non-oil GDP, as well as created 1 000 direct jobs and tens of thousands of indirect jobs.

Moreover, there are plans to grow the city further, including through increased fertiliser production, expanding the aluminium facilities by 2030, increasing the number of direct and indirect jobs, improving and deepening rail and port links and access, extending the downstream industries and welcoming more partners and stakeholders.

FMF DEALS

In this vein, the country last week wrapped up hosting the fourth edition of the Future Minerals Forum (FMF), in Riyadh, where 126 memoranda of understanding (MoUs) and agreements valued at $28.5-billion were signed between government organisations and local and international companies.

Included in this was an MoU between the RCJY and Tosyalı Coremetal Arabia to cooperate in establishing an integrated flat steel plant at Ras al-Khair.

There was also an agreement between RCJY and Vale International to invest in an iron-ore briquette plant at Ras al-Khair.

Further, RCJY and Vedanta Copper International signed an MoU to establish a copper smelter, refinery and copper rod project, while Mekyal Financial Technologies and Marine Mining Company entered into an MoU to set up and organise the investment structure to fund deep-sea exploration.

In addition, Al Watania For Industries and the Shanghai Donghexin New Material Group China signed an MoU to produce high-quality tinplate for the metal packaging industry.

The agreements signed at FMF span a spectrum of investments and collaborations, and represent strategies for driving economic growth, expanding geological efforts, building capacity and diversifying industries.

Key areas of the various MoUs include exploration and mining; financing; research and development, with a focus on technological innovation; sustainability initiatives and value chain investments.

Saudi entities involved in these agreements include the Ministry of Industry and Mineral Resources, Aramco, Ma’aden, MODON, NIDLP, Ajlan & Bros and KACST, besides others.

On the international front, the forum welcomed agreements with major global players such as Viridien, Star Vision Aerospace, Alibaba Group Holding, College of North Atlantic Canada, and ADG.

More than half of the MoUs were signed with local companies, while international partnerships accounted for the remainder.