Description: In line with the announced visit by US President Donald Trump to Saudi Arabia next week, sources from the Saudi Ministry of energy signaled that a potential mining and rare earth minerals deal was in the works with the US Department of Energy. Saudi Arabia started to differentiate their economic dependence on oil and transferred towards alternative sources of revenue such as mining operations. The country doubled its estimations for the potential in mineral reserves to approximately $2.5 trillion as crucial discoveries were made during last year’s geological research. Saudi state – owned Maaden or Saudi Arabian Mining Co. was allegedly considering several outsourcing partners which included US – based MP Materials, China’s Shenghe Resources, Australia’s Lynas Rare Earths and Canada’s Neo Performance Materials. The US is engaged in a fierce trade war with China, which already owns almost 90% of the global rare earth mineral deposits, while the US aims at depleting that dominance globally.
Impact: Saudi Arabia is one of the US key partners in the Middle East on multiple fronts especially economic cooperation. Trump’s visit to the Kingdom scheduled for next week would most certainly be to secure and reinforce the partnership between the countries as he would also try and secure integral mining and rare earth metals cooperation. Rare earth metals and minerals are currently highly sought for since they are driving the modern technological industry, as the US, ever since announcing an all – out trade war with China, is in a constant race to establish some sort of reserve foundations regarding rare earth minerals. Trump would most probably secure the mining partnership considering the long – lasting ties between the two countries while China, despite owning large swathes of rare earth mineral deposits, is engaged in pursuing foreign markets as they aim to cripple and counter the US influence and prevent them access to rare earth minerals in foreign countries.