KEY POINTS
- Saudi Arabia’s Ma’aden is in advanced talks to acquire a minority stake in a Zambian copper mine, with an agreement expected by year-end.
- Manara Minerals, a joint venture with Saudi Arabia’s Public Investment Fund, aims for a 15% to 20% stake in First Quantum Minerals’ operations.
- The investment aligns with Saudi Arabia’s Vision 2030, enhancing its mining sector to reduce oil dependence and secure critical minerals for economic diversification.
Saudi Arabia is intensifying efforts to expand its footprint in the global mining sector, with Ma’aden engaged in advanced negotiations for a minority stake in a Zambian copper mine. The anticipated agreement highlights the kingdom’s dedication to diversifying its economic portfolio beyond oil.
In an interview with Reuters, Ma’aden CEO Robert Wilt indicated that discussions with a local mining entity are progressing well, suggesting a deal is imminent.
At the Future Investment Forum in Riyadh, Wilt stated, “We are looking at Zambia and are in pretty advanced stage discussions with a company there.” He emphasized the strategic importance of this investment, with a resolution expected shortly.
Strategic move into Africa’s copper market
Sources have revealed that Manara Minerals, a joint venture between Ma’aden and the Saudi Public Investment Fund, is on the verge of securing a 15% to 20 percent stake in First Quantum Minerals’ operations, which focus on copper and nickel in Zambia. This strategic investment is estimated to be worth between $1.5 billion and $2 billion, highlighting its significant scale.
Wilt articulated the rationale behind this move, stating, “Africa is mineral-rich, especially in the copper belt. It makes perfect sense for us, given our geographical proximity and our demand for copper.” This acquisition aligns with Saudi Arabia’s broader objectives to tap into Africa’s abundant mineral resources.
Investment goals aligned with vision 2030
The investment supports Saudi Arabia’s Vision 2030 strategy to reduce oil dependence and promote economic diversification.
The mining sector is vital for securing the essential minerals needed for sustainable growth. In 2023, Manara Minerals showed its commitment by acquiring a 10 percent stake in Vale’s $26 billion copper and nickel spin-off.
Wilt emphasized copper’s growing significance in the energy transition, noting it as a “top priority” for the kingdom. He concluded, “While niche battery metals are important, copper is essential for the success of downstream development.”
Through these strategic moves, Saudi Arabia aims to position itself as a formidable player in the global mining sector while fulfilling its long-term economic ambitions.
