RIYADH: Saudi Arabia has made a significant investment in the global mining industry after the Kingdom’s Manara Minerals secured a 10 percent share in Brazil company Vale Base Metals Ltd.
The Saudi firm — a joint venture between the Saudi Arabian Mining Company, also known as Ma’aden and the Kingdom’s Public Investment Fund — will now have access to supply chains across strategic minerals, including nickel, copper, and cobalt.
The move will boost the growth of the Kingdom’s mining sector in line with the objectives of the Vision 2030 initiative to diversify the Saudi economy away from oil.
VBM also sold a 3 percent stake to investment group Engine No.1, with the total equity value of the two deals coming in at $26 billion.
Robert Wilt, executive director of Manara Minerals and CEO of Ma’aden, said: “This investment is an important milestone for Manara Minerals. Through our investment in VBM, we are increasing the supply of strategic minerals and enabling Saudi Arabia to play a growing role in the global energy transition supply chains.
“Our proactive approach is a step further towards Saudi Vision 2030. It will support local industrial development, create jobs across the Kingdom, and strengthen the position of the mining sector as the third pillar of the economy.”
Eduardo Bartolomeo, Vale’s CEO, described the deal as a “major milestone” as the company works to expand its operations.
“With our high-quality portfolio, we are uniquely positioned to meet the growing demand for green metals essential for the global energy transition, while remaining committed to strong social and environmental practices and sustainable mining,” he added.
Formed in January following an announcement at the Future Minerals Forum in Riyadh, Manara Minerals aims to invest in mining assets globally to secure strategic minerals that are essential for the resilience of global supply-chains, according to a press release.
In an interview with Arab News in June, Mohammed Al-Dawood, head of industrials and mining sector for Middle East and North Africa investments at PIF, said the company will help to establish the mining sector as the third pillar of the Kingdom’s economy, along with providing an opportunity to explore new territories.
“This is a really exciting development that is going to give the PIF and Ma’aden an extensive international footprint in the mining space. It’s going to give the partners a platform to access minerals not available in Saudi Arabia and gives us an opportunity to move into new geographical territories,” he said.
