Saudi Arabia’s Strategic Moves in Global Mining to Support Economic Diversification
Saudi Arabia is making significant strides in the global mining sector as part of its broader strategy to diversify its economy beyond oil. The nation has recently launched several initiatives to enhance its presence in the international mining landscape, supporting the ambitious Vision 2030 and National Transformation Plan.
In January 2023, Saudi Arabia established Manara Minerals, a joint venture between the Saudi State Mining Corporation and the Saudi Sovereign Wealth Fund. This venture aims to secure overseas mining assets, focusing on essential minerals like copper, nickel, iron ore, and lithium. This move provides a financial backbone for Saudi investments abroad and marks a strategic step towards reducing the economy's oil dependency.
In a notable development in July 2023, Saudi Arabia, through its sovereign fund and the Saudi Arabian Mining Company, acquired a 10% stake in the base metals subsidiary of Vale do Rio Doce in Brazil, involving a transaction of $3.4 billion. This acquisition underscores Saudi Arabia's commitment to penetrating the global mining sector, particularly in areas pivotal for future technologies like electric vehicle batteries.
Moreover, in 2024, Manara Minerals announced plans to establish a metals trading company to bolster its investments in overseas mining operations, demonstrating the practical steps being taken to realize these strategic goals.
Saudi Arabia's mining sector collaboration extends globally, with memorandums of understanding signed with multiple countries, including Japan, Egypt, Russia, Morocco, and the Democratic Republic of Congo. These agreements focus on securing the supply of crucial minerals and fostering cooperation in geological and mineral resource development.
Additionally, Saudi Arabia's active participation in international forums, such as the China International Mining Conference, highlights its efforts to attract global investors and showcase its commitment to developing its mining sector.
