In a significant move reflecting Saudi Arabia’s ambition within the Mining sector, the Kingdom is on the verge of securing a stake in a major copper mine in Zambia. This potential deal, driven by the Saudi mining titan Ma’aden, marks a pivotal step in Saudi Arabia’s strategy to diversify its economy and strengthen its presence in the global mining sector.
Robert Wilt, CEO of Ma’aden and vice chairman of Saudi Arabia’s international mining venture Manara Minerals, revealed that discussions with the Zambian mining company are in “advanced stages.” The deal, expected to finalize by the end of the year, could see Saudi Arabia acquiring a 15% to 20% stake in the Zambian assets of Canadian miner First Quantum Minerals. This investment is estimated to be valued between $1.5 billion and $2 billion, according to insiders.
The strategic interest in Zambia, part of Africa’s renowned copper belt, aligns with Saudi Arabia’s broader objectives of securing essential minerals and expanding its mining portfolio. “Africa’s mineral wealth and geographical proximity make it an attractive destination for our copper acquisition goals,” Wilt noted. Copper is increasingly seen as a vital resource, particularly as global demand surges with the accelerating energy transition towards more sustainable infrastructure and technology.
This prospective deal forms part of a larger strategy under Crown Prince Mohammed Bin Salman’s Vision 2030, which aims to diversify Saudi Arabia’s economy beyond its traditional oil dependency. The mining sector is envisioned as a cornerstone of this diversification, with efforts focused on tapping into global mineral resources and fostering domestic industry growth.
Manara Minerals, a joint venture between Ma’aden and the Kingdom’s $925 billion Public Investment Fund, has already set international precedents with its investments. Earlier this year, Manara took a notable 10% stake in Vale Base Metals, a $26 billion spin-off of Vale, a significant player in the copper and nickel markets. This move underscored Saudi Arabia’s commitment to securing its position in the international mining arena.
For Saudi Arabia, copper has emerged as a “top priority” metal, crucial to the energy transition and indispensable for developing downstream industries. While niche battery metals remain important, Wilt emphasized the fundamental role of copper in this evolving landscape. The Kingdom’s focus on copper and aluminum reflects an understanding of their critical applications in renewable energy technologies and electric vehicle manufacturing.
Corporate
As Saudi Arabia advances its negotiations for the Zambian copper stake, the world watches with interest. This investment is not just about securing resources; it’s a strategic maneuver to enhance the Kingdom’s economic resilience and influence in global markets. With a commitment to shifting towards sustainable and diversified economic activities, Saudi Arabia continues to position itself as a key player in the future of global mining and resource management.
The successful completion of this deal would mark another milestone in Saudi Arabia’s ambitious journey towards economic transformation, underscoring its proactive approach to securing essential minerals that drive modern industry and innovation.
