Saudi Arabia's sovereign wealth fund PIF (Public Investment Fund) has signed an agreement with the Saudi Arabian Mining Company (Ma’aden), one of the world's fastest-growing mining companies, to establish a new company that aims to invest in mining assets globally.
The new firm will invest in iron ore, copper, nickel and lithium as a non-operating partner with minority equity positions. It will also try to sign supply agreements with the companies and mines it invests in, Ma’aden said in a statement.
Per the deal, Ma’aden will own 51% and PIF will own 49% of the company which will be incorporated after obtaining approvals from the relevant authorities and satisfying certain conditions of the agreement.
READ: Barrick Gold expands copper footprint in Saudi with two new JV deals with state-owned miner
Ma’aden CEO Robert Wilt pointed out that this was a significant step as it develops the mining sector in Saudi Arabia and positions 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," noted Wilt.
The company plans to make two to three deals this year, he said.
In separate releases, Ma'aden also announced two further deals.
Firstly, it has agreed to acquire a 9.9% stake in American minerals exploration and development firm Ivanhoe Electric as well as form a separate joint venture with Ivanhoe to explore and develop mining projects in Saudi Arabia.
Secondly, it has signed two new joint venture deals with Barrick Gold Corp. (TSX:ABX, NYSE:GOLD) which is expanding its copper base in Saudi Arabia.
The latest agreements cover the prospective Jabal Sayid South and Umm Ad Damar licences and open up potential synergies with the neighboring Jabal Sayid copper mine which is already a successful 50:50 venture between the two companies.
Contact Jeremy at jeremy@proactiveinvestors.com