KEY POINTS
- Saudi’s Ma’aden aims for a majority stake in Bahrain’s Alba smelter.
- Crown Prince’s Vision 2030 targets metals, especially aluminium, as economic pillars.
- Ma’aden expands globally through deals in copper and base metals.
Saudi Arabia has begun a process that will give it full control of Bahrain’s Aluminium Bahrain B. S. C. (Alba) to increase its market domination of metals. Such plans followed Saudi Arabian Mining Co. (Ma’aden)’s announcement this week that it is nearing the signing of several agreements that would enable it to be the largest stakeholder at Alba.
Ma’aden’s CEO, Bob Wilt, affirmed that these measures fall in line with KSA’s Vision 2030 plan, which highlights mining and metals as one of the key sectors for the country’s economic diversification beyond oil.
Ma’aden has already invested 21% interest in Alba which it bought from Saudi Basic Industries Corp. (SABIC) for more than one billion US dollars. Yet, it does not end here. Additional shares are expected to be acquired by Ma’aden through a merger proposal, whereby it will swap its Saudi aluminium stakes for stakes in Alba.
According to Wilt, the proportion of stake owned by Ma’aden will be subject to further analysis and bargaining, but the company has the ambition to control at least 25% of the aluminium market in the future.
Saudi Arabia’s bold vision for metals
Crown Prince Mohammed bin Salman has placed metals, particularly aluminium, at the heart of his Vision 2030 plan.
With the growing importance of aluminium in the global energy transition, Saudi Arabia sees a future where it leads in the production of critical minerals.
Aluminium is essential for clean energy technologies such as solar panels and electric vehicles. By controlling Alba, Ma’aden hopes to position itself among the top five aluminium producers worldwide.
Wilt explained, “The energy transition doesn’t happen without aluminium. If we want to be a critical minerals hub, we need to secure the feedstock.”
Global ambitions with strategic partnerships
However, its focus has now shifted to the production of other metals that are key minerals. By 2030, Saudi Arabia wants to be producing aluminium but has its eyes set on other important metals as well.
Ma’aden collaborated with the Kingdom’s sovereign wealth fund to establish Manara Minerals, an investment joint venture for the acquisition of mining resources abroad. Manara has already created a stir by acquiring a 10% stake in Brazil’s Vale, a giant mining company with business in copper and nickel.
Wilt pointed out that since that deal, there has been increased attention in the global market mostly towards the Saudi Arabian mining industry.
In terms of future opportunities and predictions, both Ma’aden and Manara have their gaze on copper, which is one of the essentials for electric power distribution networks and technology. They have been in discussions about acquiring an interest in First Quantum Minerals’ copper assets in Zambia and the copper-gold project in Pakistan.
