RIYADH: Saudi Arabian Mining Co., also known as Ma’aden, has announced that it has completed the 10 percent acquisition of Brazil’s Vale Base Metals.
Ma’aden, which is majority-owned by the Public Investment Fund, said that its joint venture, Manara Minerals Investment Co., finalized the purchase, according to a Tadawul statement.
This 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.
It follows Ma’aden’s announcement in July 2023 that its joint venture had signed a binding agreement to acquire the stake for $2.6 billion as part of a strategy to invest in global mining assets.
It is also set to accelerate value generation from the best set of assets and projects VBM has across its portfolio, according to a statement. This allows the firm to help advance the global energy transition at a faster pace and at scale across the key critical mineral jurisdictions where it operates.
“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,” Robert Wilt, executive director of Manara Minerals and CEO of Ma’aden, said at the time in a statement.
“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,” Wilt added at the time.
On the other side, Eduardo Bartolomeo, Vale’s CEO, described the deal at the time 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 at the time.
Formed in January 2023 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 statement released at the time.
