Saudi Arabia has taken a significant step in advancing its presence in the global mining industry with Manara Minerals, a joint venture between the Saudi Arabian Mining Company (Ma'aden) and the Kingdom's Public Investment Fund, securing a 10 percent share in Brazil's Vale Base Metals Ltd. This strategic move grants access to crucial supply chains for strategic minerals such as nickel, copper, and cobalt, supporting the goals of the Vision 2030 initiative to diversify the Saudi economy away from its dependency on oil.
The investment, valued at $26 billion, not only bolsters the growth of the Kingdom's mining sector but also reinforces Saudi Arabia's role in global energy transition supply chains. As a proactive step towards achieving Vision 2030, the partnership is expected to spur local industrial development, generate employment opportunities nationwide, and solidify the mining sector as a pivotal component of the country's economy.
Robert Wilt, the executive director of Manara Minerals and CEO of Ma'aden, expressed the significance of the investment, stating that it marks a crucial milestone for the company. By investing in Vale Base Metals Ltd., the venture aims to increase the supply of strategic minerals, making a valuable contribution to the global energy transition.
Eduardo Bartolomeo, Vale's CEO, also hailed the deal as a "major milestone" for their expansion plans. The company is committed to meeting the growing demand for environmentally friendly metals necessary for sustainable mining, while adhering to strong social and environmental practices.
Manara Minerals, which was formed in January after an announcement at the Future Minerals Forum in Riyadh, has a clear objective of investing in mining assets worldwide to secure strategic minerals crucial for resilient global supply chains. The venture's proactive approach aligns with Saudi Arabia's ambition to establish the mining sector as a key pillar of its economy, providing opportunities to explore new territories and gain an extensive international footprint in the mining space.
Mohammed Al-Dawood, the head of industrials and mining sector for Middle East and North Africa investments at PIF, described the development as "exciting," recognizing the potential for Manara Minerals and its partners to access minerals not readily available within Saudi Arabia's borders, thus opening doors to new geographical territories and opportunities.
The strategic investment by Manara Minerals marks a significant stride towards Saudi Arabia's vision of a diversified and robust economy, while also reinforcing its presence in the global mining landscape. The partnership with Vale Base Metals Ltd. holds promising prospects for the Kingdom's sustainable growth and its pivotal role in the future of strategic minerals supply chains.