Saudi Arabia is making a determined effort to become a significant player in the global mineral supply chain, driven by its Vision 2030 strategy to diversify its economy and reduce its dependence on oil exports. The Kingdom is seeking to strengthen its local processing and industrial value-added sectors, and is actively seeking international partners to help achieve this goal.

A Questionable Pillar of Europe’s Diversification Strategy

While Saudi Arabia’s efforts to develop its mineral resources sector are ambitious, there are concerns about the Kingdom’s governance and human rights standards, which could impact the operational efficiency of the sector and pose risks for European companies. The dominance of the Public Investment Fund (PIF) in the sector raises concerns about state control and the potential for supply relationships to be co-opted for foreign policy objectives.

Saudi Arabia’s Diplomatic Efforts

Saudi Arabia is seeking to position itself as a geopolitically neutral partner and “link” in supply chains, leveraging its financial strength and location advantages to attract international companies. The Kingdom is deepening its relationship with China, while also strengthening its ties with the US and other Western nations. Saudi Arabia is also engaging with resource-rich countries in Africa and Latin America to secure stakes in mining projects.

Challenges and Delays

Despite its ambitious plans, Saudi Arabia faces significant challenges and delays in developing its mining sector. The Kingdom’s geological data are lacking, and it relies heavily on foreign expertise and investment for exploration and new mining projects. The employment potential in the mining sector is limited, and the Kingdom is actively seeking international partners to develop its steel industry and other downstream supply chains.

The Role of the Public Investment Fund

The PIF plays a crucial role in financing Saudi Arabia’s efforts to develop its mineral resources sector and downstream industries. The fund’s extensive financial involvement gives the state considerable control over the sector, and its investment decisions are often driven by a clientelist template that favors well-established economic elites with close ties to the Saudi royal family.

Recommendations for Targeted Cooperation

While a strategic raw material partnership with Saudi Arabia is not currently advisable due to concerns about governance and human rights standards, targeted, selective cooperation should be pursued. The EU, alongside MSP partners such as the US and the UK, could intensify dialogue with Saudi Arabia on governance and standards setting, and encourage its involvement in international frameworks such as the Extractive Industries Transparency Initiative (EITI). European companies are expected to become increasingly involved in Saudi Arabian supply chains, and German support for the private sector should be stepped up to provide expertise and advice on the opportunities and risks of cooperating with the Saudi raw minerals sector.

Last week, Business Secretary Jonathan Reynolds met with Li Huiming, CEO of Jingye Group, which has owned British Steel for the past four years. Jingye is now considering shutting down the company’s UK operations, including the last two blast furnaces in the country, a move that would put thousands of jobs at risk.

The UK government has earmarked £2.5 billion for the transition of steel producers to greener methods of manufacturing, particularly focusing on the development of electric arc furnaces (EAFs) that produce steel using scrap metal and clean energy. Sources suggest that up to £2 billion of this fund could be directed towards British Steel, though the exact figure will depend on the terms of any deal.

In 2023, British Steel announced plans to close its two blast furnaces at Scunthorpe, while investing £1.25 billion in constructing two EAFs in Scunthorpe and Teesside. At the time, ministers offered a £300 million support package, but British Steel insisted on the same £500 million support that was given to Tata Steel. The company initially committed to keeping its loss-making operations open while the EAFs were being built, but by September, Jingye revised its plans and proposed advancing the closure of the blast furnaces—potentially before Christmas.

In response, UK ministers have been negotiating with Jingye in a bid to secure a more favorable deal, potentially including subsidies to keep the blast furnaces running until the electric arc furnaces are ready for use. One government figure described the £2 billion figure as a “theoretical upper limit,” though it remains a key option under consideration.

Despite the significant financial offer, talks have stalled, leaving some stakeholders puzzled as to why the deal has not yet been finalized. One individual involved in the discussions suggested that “geopolitical issues” might be complicating the process, pointing out that Reynolds had made an offer that was “fair and reasonable.”

Another topic under discussion is ensuring that British Steel can continue to meet the needs of critical customers, including the UK’s rail network. Whitehall officials have also floated the idea of establishing a national plant for producing “direct reduced iron” (DRI) using green hydrogen in the future, a project that would require collaboration among multiple steel companies.

Electric arc furnaces, which rely on scrap steel and renewable energy, are seen as a cleaner alternative to blast furnaces that still use coal. However, they employ fewer workers, and the shift to greener production methods could lead to job losses in the industry. British Steel reported significant financial losses, with pre-tax losses rising eightfold in 2022 to £408 million, continuing into 2023 and 2024.

The Labour Party has promised a £7.3 billion “national wealth fund” in its manifesto, designed to support energy-intensive industries like steel in their transition to net-zero emissions. Of this, £2.5 billion is specifically earmarked for the steel sector, in addition to the £500 million already allocated to Tata Steel for its plant in Port Talbot, South Wales.

There is growing concern that the relatively smaller support package for Tata Steel may leave workers in Wales feeling underfunded compared to those in Scunthorpe. Any deal with British Steel is also likely to involve some level of job losses, further complicating the situation.

Reynolds has expressed frustration with the previous Conservative government, which failed to support British Steel’s efforts to establish a carbon capture and storage project at Scunthorpe—an initiative he believes could have ensured the plant’s long-term viability.

A government spokesperson reaffirmed the UK’s commitment to maintaining a steel industry, stating that ministers are working closely with trade unions and businesses, including British Steel, to secure a “green steel transition” that both supports the workforce and ensures the industry’s future in Britain.

For its part, British Steel confirmed that it is still in “active discussions” with the government, adding that it has recently secured the raw materials necessary to continue operations into the new year.

The International Mineralogical Society (IMA) recently announced the decision to name the mineral after Kanatzidis, acknowledging his pioneering contributions to chalcogenide chemistry. Kanatzidis expressed his appreciation for the honor, saying, “I am deeply honored to have a new mineral named after me, kanatzidisite, symbolizing the remarkable diversity and wonders of the Earth’s geological treasures.”

Chalcogenides, like kanatzidisite, are compounds made up of chalcogen elements (such as sulfur, selenium, or tellurium) combined with metallic elements. These minerals can vary in color and opacity, depending on their chemical composition, and differ notably from common silica glass.

Kanatzidis is renowned for his groundbreaking research in metal chalcogenide chemistry and for developing innovative chalcogenide materials. His work has enabled advancements in solar cells, X-ray and gamma-ray detectors, topological quantum materials, and thermoelectric technologies. A graduate of Aristotle University of Thessaloniki, Kanatzidis is now the Charles E. and Emma H. Morrison Professor of Chemistry at Northwestern.

Reflecting on his legacy, Kanatzidis hopes that kanatzidisite will inspire future generations of scientists to explore further into geological mysteries and develop new, extraordinary minerals. He remarked, “I guess I can now proudly claim that I have a ‘rock-solid’ legacy in the field of geology!”

In recognition of his work, Kanatzidis received the 2023 Centenary Prize for his pioneering research on semiconducting halide perovskites, used in solar energy conversion. His research continues to push the boundaries of exploratory synthesis and materials discovery, advancing fields critical to sustainable energy and cutting-edge technology.

The crude lead produced will have a lead content of 85-95%, while the copper cake will contain 60-70% copper and the zinc product up to 50-60% zinc. The facility will operate its main production processes 25 days a month, with auxiliary services running five days per week. 300 employees will staff the plant.

Located within the Zhuldyz industrial zone in Enbekshinsky district, the site is 1.3 km from Shymkent’s oil refinery. The main production building will measure 146 meters in length, 73 meters in width, and up to 14 meters in height. It will house a shaft furnace, raw material storage, a boiler room, settling tank, and finished product warehouse. Primary raw materials include cakes, dust, and sludge rich in lead, copper, and zinc. Materials will be delivered by open railcarsand stored in warehouses with a 1,000-ton capacity.

Construction is expected to start in Q1 2025, with operations launching by Q3 2025. Estimated annual emissions during operations include 21.4 tons of carbon monoxide, 1.27 tons of nitrogen oxide, 2.9 tons of polymetallic dust, and 0.12 tons of iron, among other emissions.

Vostok Trade is registered at the Astana International Financial Center and is involved in metal recycling and other legal activities. The company’s co-owners include Daulet Imankulov, Kuat Amanzholov, Imam-Zada Maulenov, Daniyar Bektibaev, Serik Turdaliev, Tahirzhan Baratov, and Kalykul Makhambetov.