The Kingdom has announced a major geological find on its path toward its own nuclear power industry. Energy Minister Prince Abdulaziz bin Salman reported identified resources of 110 million tons of ore in the Medina region. The rock contains not only uranium but also heavy rare earth elements. However, the metal content and extractable volumes have not yet been disclosed, meaning it’s too early to discuss the project’s economics.
The announcement was made at the 70th IAEA General Conference in Vienna. According to the minister, geological exploration in the Kingdom is ongoing, while the possibility of extracting uranium as a byproduct of fertilizer production is also being studied. This could give Riyadh an additional source of raw material for its nuclear program.
Caution in the estimates is warranted. Ore tonnage alone doesn’t determine the scale of a uranium resource. To understand whether the find is suitable for commercial mining, data is needed on metal concentration, mineralogy, extraction rates, and development costs. Until these parameters are made public, the main question remains unanswered.
Saudi Arabia’s nuclear program is gaining momentum. In July, the Kingdom signed a 30-year, multi-billion-dollar agreement with the United States that gives American companies a central role in developing nuclear infrastructure and potentially allows uranium enrichment on Saudi soil. That same month, Mark Carney became the first Canadian prime minister in 26 years to visit the Kingdom. The two sides signed commercial agreements worth more than $710 million.
The Medina discovery could become another link in Saudi Arabia’s uranium cycle, but for now it remains more of a geological claim than a confirmed resource. The absence of data on metal content leaves the key question open: will the Kingdom become a new player in the uranium market, or will the find turn out to be merely a promising but costly asset?
Source: REUTERS
Image: REUTERS / Dado Ruvic
