Saudi sovereign wealth fund PIF (Public Investment Fund) and Ma’aden (Saudi Arabian Mining Company), have signed a joint venture (JV) agreement to establish a new company that aims to invest in mining assets globally to secure strategic minerals for the country’s industrial development.
The company will be incorporated after obtaining approvals from the relevant authorities and satisfying certain conditions of the JV agreement.
Ma’aden will own 51 percent and PIF will own 49 percent of the company. The company’s capital will amount to $50mn. The company aims to initially invest in iron ore, copper, nickel, and lithium as a non-operating partner taking minority equity positions.
This will help provide physical offtake of critical minerals to ensure supply security for domestic mineral downstream sectors, and position Saudi Arabia as a key partner in achieving global supply-chain resilience.
Yazeed Alhumied, deputy governor and head of MENA Investments at PIF, said: “PIF and Ma’aden combine extensive investment expertise with deep sector knowledge. The new company will significantly contribute to strengthening Saudi Arabia’s strategic position as an important link in the global supply chain in line with PIF’s strategy to further grow key industries.
“As a catalyst of Vision 2030, PIF continues to drive the growth of new sectors, and companies while contributing to job creation, technology transfer and localizing knowledge to build a prosperous and sustainable economy in Saudi Arabia.”
Robert Wilt, CEO of Ma’aden, said, “This is a significant step for Ma’aden as we develop the mining sector in Saudi Arabia and position the Kingdom as a key ally in securing the metals of the future."
“The global energy transition relies on the strategic minerals needed for renewable energy and battery storage, and our focus on these will give us a foothold in the global commodity value chain, where major supply constraints are combined with growing demand.”
The agreement is in line with the sovereign wealth fund’s mission to build strategic economic partnerships to achieve sustainable returns and unlock the capabilities of promising sectors with significant long-term growth potential, in line with Vision 2030. It also aligns with the mining giant’s 2040 Strategy to focus on upstream mining activities and gain exposure to future minerals as well as build partnerships with global mining companies.
