Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) and the Saudi Arabian Mining Company (Ma’aden) has announced the signing of a joint venture (JV) agreement to establish a new company to invest in mining assets globally
The announcement to form a JV, which is aimed at securing strategic minerals that are essential for Saudi Arabia’s industrial development as well as the resilience of global supply chains, was made during the opening of the Future Minerals Forum in Riyadh, Saudi Press Agency (SPA) said in a report.
They will incorporate the company after obtaining approvals from the relevant authorities, and satisfying certain conditions of the JV agreement. Ma’aden will own 51% and PIF will own 49% of the company, the SPA report said.
The company aims to invest in iron ore, copper, nickel, and lithium as a non-operating partner taking minority equity positions.
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.
Commenting on the development, deputy governor and head of MENA investments at PIF Yazeed Alhumied 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.”
The agreement is in line with PIF’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 Ma’aden’s 2040 Strategy to focus on upstream mining activities and gain exposure to future minerals as well as build partnerships with global mining companies.