Ahead of President Trump’s state visit to the Gulf nation, a potential agreement has been announced.
The United States and Saudi Arabia are looking to deepen cooperation in the mining and mineral resources sector. A deal is currently under discussion, according to a report published Tuesday by the Gulf state’s official news agency. The announcement comes shortly before US President Donald Trump is scheduled to visit Saudi Arabia.
Saudi Arabia is working to diversify its economy, which has long depended heavily on oil production. The country’s vast and largely untapped mineral resources play a key role in this strategy. According to the government, these reserves, including phosphate, gold, and rare earth elements, are currently valued at 2.5 trillion US dollars. Early last year, the kingdom announced it would invest 182 million dollars in exploring these resources, calling it the largest exploration program in the world.
An analyst from the Australian market intelligence firm Discovery Alert described the proposed Saudi-American mining partnership as a strategic turning point in global resource politics. It would bring together Saudi Arabia’s enormous mineral wealth with the technological expertise of the United States.
Talks about collaboration between mining companies from both countries have been ongoing for several weeks. According to Reuters, MP Materials, the operator of the only rare earth mine in the United States, is among the potential partners for Ma’aden, Saudi Arabia’s state-owned mining company. Together, they could expand rare earth production within the kingdom. The Chinese company Shenghe, a shareholder in MP Materials, is also reportedly involved in the discussions.
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