Oil, Copper & Gold: Saudi Arabia Eyes Red and Yellow Gold – Global Demand Soars, Here’s How You Can Profit

Copper Demand Soars Globally
Traditionally, crude oil has been the “black gold” powering Gulf economies. For Saudi Arabia, oil remains vital, but the kingdom is now diversifying its focus towards copper (red gold) and gold (yellow gold) as part of its long-term economic strategy.

Saudi Arabia’s Plan

Under its “Vision 2030” initiative, Saudi Arabia aims to make mining of copper, gold, and other minerals the third pillar of its economy, reducing reliance on oil. The government estimates trillion-dollar reserves of phosphates, copper, and bauxite, crucial for the global energy transition, including electric vehicles and renewable energy.

Mining Licenses and Global Partnerships

Saudi Arabia plans to quadruple mining revenue by 2030 and is inviting companies worldwide to establish operations.

• An Indian firm has been licensed to explore copper and gold mines.
• A Canadian company already operates a copper mine.
• An Australian firm recently received rights for mining metals.
• China is expanding exploration through a local partnership.

Why Copper Demand Is Rising

The green economy is driving copper demand. Copper is essential for technologies such as:

• Electric vehicles (EVs)
• Batteries
• Solar panels
• Wind turbines

Experts estimate copper demand could rise by 600% by 2030 due to the global energy transition. As renewable energy and electrification expand, more mining will be required.

Leading Copper-Producing Countries

• Chile: World’s largest producer; 5.3 million metric tons in 2024 (23% of global output)
• Congo: 3.3 million metric tons (over 11% of global production)
• Other key producers: Peru, China, Indonesia, USA, Russia, Australia, Kazakhstan, Mexico

Over 65% of the world’s copper is concentrated in Chile, Australia, Peru, Mexico, and the USA.

Global Copper Reserves

• Total copper mined so far: ~700 million metric tons
• Known reserves: ~2.1 billion metric tons
• Estimated undiscovered copper: ~3.5 billion metric tons
• Potential total copper on Earth: ~6.3 billion metric tons

Copper Prices on the Rise

Copper prices are surging worldwide. On the MCX in India, copper futures have crossed ₹1,000 per kilogram, with over 20% increase since the start of the year. Supply constraints and rising demand are driving the surge. Existing mines are nearing depletion, and opening new mines can take up to 15 years.

How Investors Can Profit

Investors can capitalize on rising copper demand through multiple avenues:

• Copper ETFs
• Stocks of copper mining companies
• Copper futures trading

With the right strategy, these avenues can benefit from price surges in copper. Investors are advised to seek expert guidance before trading.