Industry Minister Discusses Localizing Smart Solutions for Mining Operations with Leaders of Global Mining Companies
Minister of Industry and Mineral Resources Bandar Alkhorayef held meetings with leaders of prominent mining service companies participating in the MINExpo International, held here between September 24 and 26.
Discussed were localizing the latest smart solutions in mining operations and the promising investment opportunities in the Saudi mining sector.
The meetings were attended by Vice Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid AlMudaifer.
Alkhorayef presented to Michael Wright, CEO of Thiess, a leading mining services company, the great investment opportunities in the mining sector in the Kingdom, the objectives of the comprehensive mining strategy, and the Mining Investment Law, which provides legislative stability in “one of the fastest-growing investment environments in the world”.
He invited Wright to explore the Kingdom as an attractive location for Thiess in the region. Thiess is recognized for its leadership in mining services, with operations extending across Australia, Asia, and the Americas; it is engaged in the extraction of various minerals, including thermal and metallurgical coal, copper, iron ore, nickel, gold, and diamonds.
Alkhorayef also met with John Stanton, CEO of Weir Group, a leading engineering company providing solutions to enhance the performance and production efficiency of various sectors, including mining.
Discussions focused on the valve and pump sector, which had a market value of $9.8 billion in Saudi Arabia by the end of 2022. Studies indicate a growing demand for valves and pumps, driven by massive projects in sectors such as oil and gas, with local production unable to fully meet demand.
Discussions also explored the possibility of establishing a pump and valve manufacturing facility in the Kingdom, where Weir Group could gain competitive advantages to boost its investment and expand its operations.
Alkhorayef also held a meeting with Sandvik Rock Processing Solutions President Richard Harris, and Sandvik Surface Drilling Solutions President Petri Virrankoski. The company offers products and solutions for mining, rock drilling, rock processing, and metal cutting, focusing on enhancing mining operations through advanced equipment, tools, services, and digital innovations.
Reviewed were the objectives of the comprehensive mining strategy in the Kingdom and the available investment opportunities for Sandvik, particularly concerning mining equipment and cranes.
Alkhorayef also met with Dave Goddard, head of the mining division at Hexagon, a global leader in digital solutions.
Alkhorayef highlighted the Kingdom's digital transformation in various sectors, including industry and mining, and several initiatives, foremost among which the Future Factories program, which aims to automate 4,000 factories, providing an opportunity for Hexagon to expand its presence in the Kingdom and meet the growing demand for software solutions, including AI applications.
Alkhorayef met with leaders of mining services companies, including Caterpillar Chief Technology Officer Otto Breitschwerdt, with whom he reviewed promising opportunities in the heavy equipment and diesel generator sectors, particularly given the Kingdom's large-scale projects, as well as the objectives of the National Industrial Strategy, which positions diesel engines and heavy equipment as key to specialized projects.
Alkhorayef said the Saudi market for heavy equipment is valued at over $4 billion, and the diesel generator market at $550 million; both are expected to significantly grow by 2030.
With no licensed local manufacturers for heavy equipment and only 46% of the domestic demand for diesel generator sets being met, there is a key opportunity to localize these industries in the Kingdom and a promising potential for establishing a Caterpillar production facility, particularly for heavy machinery and diesel generator sets.
Caterpillar is a global leader in the manufacturing of construction and mining equipment, diesel and natural gas engines for off-road use, industrial gas turbines, and diesel-electric locomotives.
Known for providing innovative solutions to its customers worldwide for over 100 years, Caterpillar has a long-standing partnership with the Saudi company Zahid Tractor, which has served as its distributor and service provider in Saudi Arabia for 70 years. As part of this collaboration, Zahid Tractor provided 69 generator sets, delivering 32 megawatts of hybrid power solutions using both diesel and B100 biodiesel for the construction phase of the Red Sea Project in the Kingdom.
Alkhorayef also met with Dan Lankford, chairman of Impossible Metals, a mining services company, with whom he discussed the latest smart solutions used in mineral exploration, particularly in seabed and ocean mining operations.
Impossible Metals is actively engaged in developing underwater robotic vehicles for collecting critical minerals from the seabed. The company recently succeeded in testing its autonomous underwater vehicle Eureka II AUV in deep waters.
