Saudi Arabia, a Kingdom that has grown astonishingly wealthy from decades of exporting hydrocarbons is now looking to invest and finance critical minerals operations around the world.
Just last week, a JV between the Saudi Arabian Mining Company and Ma’aden, the Kingdom’s Public Investment Fund took a 10% stake in Vale Base Metals Ltd.
This will give Saudi Arabia a seat at the table of influence across many critical minerals needed for the global decarbonisation effort to stop dangerous global warming.
Japanese trading house Mitsui and the Qatar Investment Authority, according to people with knowledge of the matter. Goldman Sachs advised Vale. Bank of America worked with PIF and Maaden.
Vale, which is known for its iron ore operations, established Vale Base Metals assets in Canada, Brazil and Indonesia that were acquired in the purchase of Canada’s Inco announced in 2006.
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.”
The investment will see Saudi have a strategic influence on minerals in the Vale wheelhouse, including nickel, copper, lithium and cobalt.
The agreement between the nations will see the Saudi JV invest US$3.4 Billion in Vale.
Vale, known for iron ore operations, consolidated critical minerals assets into Vale Base Metals from operations across Canada, Brazil and Indonesia – acquired in the purchase of Canada’s Inco back in 2006.
Vale Base Metals operates from a Canadian hub in Toronto with Vale HQ in Rio de Janeiro, Brazil.
At the weekend, Saudi Arabia was also linked to a possible takeover of Sigma Lithium – a major lithium player with operations in Brazil.
