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The region comprising Africa, the Middle East, Central Asia, and South Asia has significant potential in minerals that can drive the global energy transition
The Super Region needs capital investment of $5.40 trillion to boost energy transition by 2035, according to the Future Minerals Forum (FMF) report.
The region comprising Africa, the Middle East, Central Asia, and South Asia has significant potential in minerals that can drive the global energy transition.
Entitled Shaping the Future of Minerals, the FMF report highlighted critical insights into creating shared value across the mining ecosystem.
Ali Al Mutairi, Executive Director of FMF, noted: “The Report provides authoritative content that tackles the tough issues facing the supply of minerals and aims to spark debate on the way forward at FMF in January 2025.”
“The report shows that capital investment of $5.40 trillion will be required to sustain and expand global mining and processing facilities – nearly the equivalent to the combined GDP of Japan and Spain,” Al Mutairi mentioned.
More than 90% of the mass moved involves coal, iron ore, copper, and gold. Over 70% of total capital will be needed for these four commodities, with around 75% of it dedicated to sustaining existing assets.
The steel value chain alone is estimated to take nearly $1.60 trillion in sustaining capital expenditure.
The report also reflected the importance of policies centred on gross domestic product (GDP) growth, job creation, and export enhancement as essential for countries aiming to boost value addition.
CRU principal Consultant, Ionut Lazar, said, “Collaboration across sectors is essential to meet global decarbonization targets—it cannot be achieved by a single entity. It is a global, multi-stakeholder challenge that requires strategic collaboration, especially if we want to move at a pace and achieve the desired scale.”
Patrick Barnes, Head of Metals and Mining Consulting at Wood Mackenzie, said: “Value addition can provide countries with a range of well-known benefits: increased GDP, more fiscal revenue from a larger tax base, increased export earnings from higher-value products, and creation of direct and indirect jobs. But countries cannot afford to proceed blindly.”
“Their plans have to take into account the real market dynamics, costs and benefits if they want to compete for investment and actually realise value,” Barnes added.
The CEO of Global AI Corporation, Richard Rothenberg, highlighted: “As the demand for critical minerals continues to grow, policymakers and investors should prioritise sustainable practices, community engagement, and transparent governance to ensure long-term success and positive public perception.”
Meanwhile, Riyadh is set to host the fourth edition of the Future Minerals Forum (FMF) from 14 to 16 January 2025, under the theme Delivering Impact. The third edition gathered a total of 45 ministers from more than 77 countries to discuss competition in the market. |
