Last November Saudi Arabia and the United States have concluded an agreement to strengthen cooperation in the extraction and processing of key minerals and raw materials.
As part of this visit, the two countries signed a strategic framework agreement that is intended to strengthen cooperation between US and Saudi entities in the extraction and processing of key minerals and raw materials.
A few months later, that seems to be it Greenland could be the setting – and especially the ground – for this emerging cooperation.
American mining company Critical Metals Corp. concluded in January this year. a preliminary agreement to establish a joint venture with a large Saudi industrial conglomerate.
The purpose of the contract is to transport 25 percent. raw materials mined by Critical Metals Corp.'s Tanbreez project. in Greenland to Saudi Arabia, where they will be processed in a new factory that the parties intend to build.
After refining, the raw materials will be sent to the United States, where they will be used to produce military equipment.
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In this way, Saudi Arabia will gain access to processing and participation in production, and the American company will receive capital and materials for the country's defense industry.
Critical minerals have become the focus of global investment in recent years, with Saudi Arabia looking to position itself as a key player in new supply chains
– says Robert Mogielnicki, an external researcher from the Arab Gulf States Institute think tank in Washington.
The conglomerate Abdel Hadi A. Al-Qahtani & Sons (AHQ) is behind the Saudi cooperation.
AHQ is one of the oldest industrial groups in Saudi Arabia, operating, among others, in infrastructure, energy, logistics and agriculture.
On the LinkedIn social networking site, AHQ writes that it expects that the project with Critical Metals Corp. will attract investments worth up to USD 1.5 billion. [ponad 5,5 mld zł według obecnego kursu walut].
AHQ also writes that the cooperation contributes to strengthening the Saudi-US partnership and that the project is in line with Saudi Arabia's economic strategy.
Agreement between AHQ and Critical Metals Corp. was concluded during this year's Future Minerals Forum in Riyadh, Saudi Arabia. Photo: AHQ Sons
Mining and critical minerals have also become a key element of Saudi Arabia's long-term economic plans.
Saudi Arabia's mining strategy
As part of its Vision 2030 reform program, Saudi Arabia is currently seeking to diversify the country's economy to reduce dependence on oil revenues.
The Vision 2030 program recognizes mining as one of the most important sectors of Saudi Arabia's national economy, and the goal is to “develop and realize the maximum value of the mining sector.”
According to Robert Mogielnicki, the purpose of investment is both economic and strategic benefits.
It's both about achieving a financial return and securing a position in global supply chains that are becoming increasingly competitive, especially between the United States and China
– he explains.
— At the same time, Saudi Arabia sees its participation in critical minerals supply chains as crucial to the development and support of sectors such as defense and artificial intelligence. Access to the necessary raw materials provides the country with both long-term economic and strategic benefits, the analyst adds.
Robert Mogielnicki also points out that the agreement between AHQ and Critical Metals Corp. in Greenland is an example of how Saudi Arabia is using joint ventures as a central element of its strategy.
Thanks to your participation in joint venture the country can gain access to technology and expertise without having to bear all the financial risk, we hear.
Agreement between AHQ and Critical Metals Corp. is expected to be finalized in the coming months.
Danwatch reached out to both companies for comment regarding their operations in Greenland, but received no response.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
