#Saudi Arabia #Riyadh #Energy Transition #Future Minerals Forum #Mining Investment

$5.4 Trillion Investment Needed for Energy Transition by 2035

In a pivotal report released by the Future Minerals Forum (FMF), it has been revealed that a staggering investment of $5.4 trillion is essential for the global mining sector to effectively contribute to the energy transition by 2035. The comprehensive study, titled "Shaping the Future of Minerals", delves deep into the economic and environmental stakes involved and underscores the importance of shared value creation across the mining ecosystem.

The Role of Emerging Markets

The report stresses that emerging markets are projected to absorb more than 40% of these investments. This trend reflects a significant shift in the flow of capital, acknowledging the untapped mineral potential in these regions, particularly in the Super Region which holds vast mineral resources that can drive energy transition initiatives. According to Ali Al-Mutairi, the Executive Director of FMF, effectively harnessing these resources can not only advance the current infrastructure but also play a critical role in achieving global decarbonization goals.

Key Stakeholders Speak Out

Several industry leaders have weighed in on the findings of the report, emphasizing the need for robust partnerships and strategic collaborations.

Mark Cutifani, President of Vale Base Metals

Cutifani emphasized the importance of forming sustainable partnerships that foster shared value creation. He stated, “Engagement with stakeholders is essential for meeting and exceeding expectations in a rapidly evolving industry.”

Ionut Lazar, Senior Consultant at CRU

Lazar highlighted the necessity of cross-sector collaboration, asserting that “The global decarbonization challenge requires a multi-faceted approach and strategic alliances to progress at a sustainable pace.”

Patrick Barnes, Global Head of Metals and Mining Consulting at Wood Mackenzie

Barnes pointed out that the value-added benefits of these investments could enhance national GDPs, broaden the tax base, and improve export revenues. He remarked, “Countries must align their strategies with market dynamics, ensuring their plans are informed by both costs and potential benefits.”

Peter Bryant, Co-Founder and Chairman of the Development Partner Institute

Bryant noted the responsibility of businesses to drive shared value, saying, “Collaboration with new partners is essential in fostering trust and enabling mutual growth opportunities.” He stressed that governments must play a supportive role without being overly regulatory.

Dr. Michelle Michot Foss, Researcher in Energy and Minerals

Lastly, Foss observed the potential of the mining industry to positively impact local and regional economies, while also stating, “Governments need to ensure the fair allocation of economic benefits to build trust in communities.”

Richard Rothenberg, CEO of Global AI Corporation

Rothenberg highlighted the urgent need for sustainable practices, community engagement, and transparent governance as key factors for long-term success in the increasing demand for critical minerals. He remarked, “As demand escalates, it is imperative for policymakers and investors to prioritize responsible mining practices.”

Conclusion

As we stand on the brink of an essential energy transition, the insights from the FMF2024 report not only shed light on the investments required but also outline the collective responsibility of various stakeholders in making this transition successful. The call to action has been made clear – strategic collaboration, investment, and sustainability must lead the way as the mining sector plays a crucial role in shaping a greener future. For further details and the full report, visit the Future Minerals Forum's official website.