Saudi mining firm makes global mark with 10% stake in Vale Base Metals

Manara Minerals was formed in January following an announcement at the Future Minerals Forum in Riyadh (Shutterstock)
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Updated 28 July 2023
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Saudi mining firm makes global mark with 10% stake in Vale Base Metals

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.


CMA CGM, global carriers suspend Gulf transits on security fears

Updated 15 sec ago
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CMA CGM, global carriers suspend Gulf transits on security fears

RIYADH: Shipping and logistics across the Middle East were disrupted after major carriers halted routes and ordered vessels to seek shelter following joint US-Israeli attacks on Iran and Tehran’s warning restricting transit through the Strait of Hormuz.

At least 150 tankers, including crude oil and liquefied natural gas vessels, dropped anchor in open Gulf waters beyond the Strait of Hormuz, while dozens more were stationary on the other side of the chokepoint, shipping data showed on March 1, Reuters reported.

The tankers were clustered in open waters off the coasts of major Gulf oil producers, including Iraq and Saudi Arabia, as well as LNG giant Qatar, according to Reuters estimates based on ship-tracking data from the MarineTraffic platform.

This comes as French shipping giant CMA CGM instructed vessels operating in the Gulf to move to safe shelter and suspended some Suez Canal transits as security risks escalated along one of the world’s busiest trade routes.  

The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most critical energy chokepoints, carrying about 30 percent of global oil supplies along with significant volumes of liquefied natural gas.

The world’s third-largest container line said all vessels currently inside or bound for the Persian Gulf had been instructed to proceed immediately to safe shelter, while certain canal transits were halted until further notice and ships were rerouted via the Cape of Good Hope, according to a statement.

The precautionary move comes as shipping companies reassess operations across the region following military strikes and retaliatory attacks that have heightened security risks along critical maritime corridors linking Asia, Europe, and the Middle East.

“This decision is dictated by safety considerations and is made in compliance with our Bill of Lading Terms and Conditions,” the statement said.

It added: “Customers will be contacted as soon as we have more details of the possible alternative ports where their cargo could be discharged.”

The UK Maritime Trade Operations warned that the regional maritime security environment remains unstable, citing heightened military activity across key shipping lanes.

“The maritime security environment across the Arabian Gulf, Gulf of Oman, North Arabian Sea, Bab al Mandab and the Strait of Hormuz remains highly volatile, with ongoing regional military activity contributing to an elevated threat to commercial shipping,” UKMTO said in an advisory.

The agency added that mariners should expect disruption to navigation and communications systems.

UKMTO said there is “significant military presence and activity across the region” and warned vessels of an increased risk of miscalculation or misidentification near sensitive maritime infrastructure.

Despite circulating reports, the agency said “no official closure of the Strait of Hormuz has been formally communicated to the maritime industry through recognized maritime safety channels.”

Separately, Japanese shipping companies have also begun restricting movements near the Strait of Hormuz, Reuters reported.

Nippon Yusen instructed vessels to halt transit in the area on Feb. 28, while Mitsui O.S.K. Lines said its ships were remaining in safe waters, citing crew and cargo safety as its top priority.  

Kawasaki Kisen Kaisha said several of its vessels in the Persian Gulf were placed on standby, noting that, unlike other maritime routes, there are limited diversion options for ships operating near the strait.

“Until the situation stabilizes, we will not attempt to send vessels through the strait, nor dispatch additional ships towards the area,” a spokesperson said.

German shipping group Hapag-Lloyd has also suspended all vessel transit through the Strait of Hormuz until further notice because of the evolving security situation, it said.

This comes as a Palau-flagged oil tanker was hit off Oman’s Musandam peninsula on March 1, injuring four crew members, the country’s Maritime Security Centre said, following drone strikes on the Gulf nation’s commercial port of Duqm, Reuters reported.

The incidents mark the first time targets in or near Oman have been struck since Tehran launched retaliatory attacks across Gulf states after joint US-Israeli strikes on Iran.

The 20-member crew of the Skylight tanker was evacuated after the attack, which occurred about five nautical miles north of Khasab Port in Musandam, according to the maritime authority in a post on X. The centre did not specify what hit the vessel but said four crew members, among them 15 Indian and five Iranian nationals, suffered injuries of varying severity.

Oman’s Musandam peninsula shares control of the Strait of Hormuz with Iran, a strategic chokepoint through which roughly one-fifth of global oil consumption passes.

Earlier in the day, Oman’s state news agency reported that Duqm commercial port was struck by two drones, injuring one expatriate worker. Debris from another drone fell near fuel storage tanks, though no additional casualties or material damage were recorded.