 |
| Image Source: Google |
The company is awaiting approvals from relevant authorities, and will be set up after meeting certain requirements under the agreement
Saudi Arabia’s Public Investment Fund (PIF) and Ma’aden, the Saudi Arabian Mining Company Ma’aden, signed a joint venture (JV) agreement to establish a new company.
The agreement is aligned with PIF’s mission to build strategic economic partnerships to achieve sustainable returns in line with Vision 2030.
The new company, is aimed at investments in global mining assets to secure minerals “essential” for the kingdom’s industrial development and the “resilience of global supply-chains,” PIF said in a statement on Wednesday.
The company is awaiting approvals from relevant authorities, and will be set up after meeting certain requirements under the JV agreement.
Ma’aden will own 51 percent of the new company, whereas PIF will own 49 percent. The company’s capital will amount to $50 million, and will initially invest in iron ore, copper, nickel, and lithium “as a non-operating partner taking minority equity positions,” PIF said.(ads2)
“This will 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,” the statement added.
“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,” PIF head of MENA investments and deputy governor Yazeed Alhumied said.
Ma’aden chief executive officer Robert Wilt added that this agreement is a “significant step” as they continue to develop the mining sector in Saudi Arabia, thus positioning 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,” Wilt said.
)
