The Saudi Cabinet has announced plans to negotiate a memorandum of understanding (MOU) with the US, focusing on collaboration in mining and mineral resources.

This development comes as part of Saudi Arabia's Vision 2030, aiming to diversify its economy away from oil, according to a report by Reuters.

The discussions will involve the Saudi Ministry of Industry and Mineral Resources and the US Department of Energy, with details of the MOU yet to be disclosed.

The announcement precedes a scheduled visit by US President Donald Trump to Saudi Arabia next week.

Saudi Arabia's mining sector has seen rapid expansion, with the kingdom's mineral reserves valuation nearly doubling last year to $2.5trn, including significant rare earth elements.

Ma'aden is reportedly considering forming a rare earths processing partnership with one of four international company, including one from the US.

The potential partners include MP Materials, Shenghe Resources, Lynas Rare Earths and Neo Performance Materials, the report said.

Additionally, Saudi Arabia has increased its global mining footprint through Manara Minerals, a joint venture with its sovereign wealth fund and Ma'aden.

Manara's inaugural international investment was acquiring a 10% stake in Vale Base Metals, a spin-off from Vale, worth $26bn (£19.48bn).

Saudi Arabia’s Ministry of Industry and Mineral Resources has also recently granted exploration licences covering 4,788km² in the mineral-rich areas of Jabal Sayid and Al-Hajjar to various local and international mining companies.

This initiative is part of the ministry's strategy to accelerate the exploration and development of the kingdom's mineral wealth, estimated at SR9.3trn.

Indian mining giant Vedanta, along with a consortium led by local company Ajlan & Bros and China's Zijin Mining, are among the companies that received the licences.

The country began issuing licences to international mining operators in 2022.