Saudi Arabia to open £18bn mine as country moves to wean its economy off oil

The king of Saudi Arabia is set to open a new mining project on Thursday as the country tries to diversify its economy away from a reliance on oil.

King Salman bin Abdulaziz will kick off the Waad Al Shamaal project, a new city in the desert based around a phosphate mine.

The 85bn riyal (£17.7bn) project is expected to create around 10,000 jobs, the country’s deputy energy minister told Al Arabiya TV.

Saudi Arabia has placed renewed focus on its mining sector in recent months as it hopes to wean the economy off its addiction to oil.

Experts believe there are around 500m tonnes of phosphate ore in the region, around seven per cent of global reserves, which the Saudis are hoping to cash in on.

The regime’s Vision 2030 plan for the future of the Saudi economy places renewed focus on the country’s aluminium, phosphate, gold, copper and uranium reserves, which it expects to contribute 97bn riyal and 90,000 jobs by 2020.

“Although the mining sector has already undergone improvements to cater to the needs of our industries, its contribution to GDP has yet to meet expectations,” the plan said.

The government has also promised to stimulate private sector investment by investing in infrastructure and exploration.

“We will also form strategic international partnerships and raise the competitiveness and productivity of our national companies. This will boost their contribution to the sector’s growth, as well as to the localization of knowledge and expertise,” it said.

The Waad Al Shamaal project also hopes to open up the country’s north to development and jobs.

Saudi Arabia has faced strong international pressure since the murder of journalist Jamal Khashoggi last month.

The country confirmed today that Crown Prince Mohammed bin Salman – who the CIA suspect was behind the killing – will make his first trip abroad since Khashoggi’s death when he visits Argentina for the G20 at the end of the month.