On July 30, 2023, the Saudi Arabian Mining Company, known as Ma’aden, declared interest in the global mining industry. Ma’aden, in collaboration with the Public Investment Fund (PIF), established Manara Minerals Investment Company as a joint venture to pursue strategic mining investments worldwide.
As a part of its investment strategy, Ma’aden signed a binding agreement to acquire a 10 percent stake in Vale Base Metals, a Brazilian company with projects in Canada, Brazil, and Indonesia.
The transaction depends on an enterprise value of $26 billion and aims to expand the production of copper and nickel across Vale’s portfolio, crucial for the development of new technologies supporting the global energy transition.
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Sources Related to Saudi Arabia’s Ma’aden (For R&D)
- Official Website of Ma’aden
- Saudi Arabian Mining Company (MA’ADEN)
- Maaden Aluminium Co Company Profile & Overview
- Ma’aden Alumina Refinery Project
- Ma’aden Aluminium Company Information
Ma’aden’s move to acquire a stake in Vale Base Metals denotes its initial critical endeavor into the global mining sector. This investment aligns with Saudi Arabia’s Vision 2030 plan, which tries to broaden the country’s economy away from its reliance on oil and gas income.
With desires to significantly increase the mining sector’s contribution to the country’s economic result by 2030, Saudi Arabia plans to establish mining as the third pillar of its economy.
This strategic investment in Vale Base Metals allows the Kingdom to secure access to essential strategic minerals like copper, nickel, and cobalt, which are vital for the growth of various industries and the global transition to cleaner energy sources.
Manara Minerals Investment Company and Vale Base Metals
Manara Minerals investment company was established as a joint venture between Ma’aden and the Public investment fund to facilitate strategic investments in mining assets worldwide. The company’s objective is to secure crucial minerals that will strengthen global supply chains, support the growth of local industries, create jobs, and contribute to the diversification of Saudi Arabia’s economy.
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Through this venture, Saudi Arabia acquires a critical global impression in the mining space, permitting access to minerals not readily available within the Kingdom’s borders.
Vale Base Metals, a subsidiary of Vale SA, is a major player in the production of copper and nickel, two metals essential for the advancement of green technologies, including electric vehicles (EVs). The demand for copper and nickel is supposed to take off as the world changes to cleaner energy sources and decreases dependence on fossil fuels.
Vale Base Metals’ investment in new projects across Brazil, Canada, and Indonesia will reinforce the production limit of these critical metals and support the global energy transition. The strategic partnership with Manara Minerals provides Vale Base Metals with the financial resources and expertise to expand its operations and contribute significantly to the supply of responsibly sourced raw materials for the infrastructure of the future.
Ma’aden’s participation in this deal aligns with its broader Vision 2030 strategy. As a mining organization operating several extraction sites and mines in Saudi Arabia, Ma’aden plays a central role in the Kingdom’s efforts to boost the mining sector.
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To help its development and extension, Ma’aden recently expanded its share capital by $3.2 billion. This financial strength enables Ma’aden to finance the acquisition of the 10 percent stake in Vale Base Metals without external funding. The deal reflects Ma’aden’s commitment to long-term sustainability and its desire to contribute to the global energy transition.
The investment in Vale Base Metals is an achievement for Saudi Arabia, positioning the Kingdom as a significant player in the global mining industry. By securing access to strategic minerals, Saudi Arabia enhances its economic resilience and strengthens its position in the supply chains critical for the energy transition.
The acquisition expands the Kingdom’s international footprint, fosters partnerships with global mining giants, and opens up opportunities for exploration and investment in new territories. Moreover, it supports the creation of job opportunities and promotes industrial development, essential elements in achieving Saudi Arabia’s Vision 2030 goals.
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