Saudi Arabia’s mining minister is set to visit Brazil and Chile over the next two weeks as the country aims to diversify its economy beyond oil and establish a stronger foothold in the global mining industry.
Strategic Discussions in Brazil
In Brazil, the discussions will focus on mining, food processing, and aviation. Saudi Minister of Industry and Mineral Resources Bandar Alkhorayaf will meet with several key players in these sectors. Among those scheduled for talks are Minerva Foods, JBS, and BRF SA, as well as the Brazilian Mining Association (IBRAM) and mining giant Vale.
This visit aligns with Saudi Arabia’s broader strategy to expand its electric vehicle (EV) production capabilities. The Kingdom recognizes the importance of securing a stable supply of raw materials essential for EV manufacturing, such as lithium.
After Brazil, Alkhorayaf will head to Chile, the world’s second-largest lithium producer. In Chile, he is set to meet with Aurora Williams, Chile’s Minister of Mining, along with representatives from major mining companies Antofagasta and Codelco. Codelco, a state-run entity, has been actively seeking private-sector partnerships to advance its lithium projects.
Saudi Arabia’s interest in lithium is part of a larger strategy to diversify its economy. Also, the Kingdom aims to leverage lithium resources to support its burgeoning EV industry. Furthermore, Almar Water Solutions, a Saudi company, is already eyeing a partnership with Codelco for the Maricunga lithium mining project, highlighting the Kingdom’s proactive approach to securing key mineral assets.
Broader Economic Diversification
Saudi Arabia’s diversification strategy extends beyond lithium. The Kingdom is also targeting other essential minerals such as copper, cobalt, and nickel. This comprehensive approach is designed to reduce its economic reliance on oil and foster growth in new industries.
The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, and Ma’aden, the Kingdom’s mining company, have formed a joint venture named Manara Minerals. This venture is focused on investing in international mining assets to ensure a steady supply of these critical minerals.
Brazil has also attracted Saudi investment interest. Last month, Brazil’s Minister for Energy, Alexandre Silveira, revealed that the PIF plans to invest $15 billion in Brazil. These investments will be directed towards green hydrogen, infrastructure, and renewable energy, reinforcing the strong economic ties between the two countries.
Saudi Arabia’s strategic visits to Brazil and Chile underline its commitment to diversifying its economic base and enhancing its global mining presence. Furthermore, these initiatives are crucial as the Kingdom seeks to transition from its oil-dependent economy to a more diversified and sustainable model.
Source: Mining.com
