Saudi Arabia’s mining minister will visit Brazil and Chile over the coming two weeks as the world’s leading oil exporter seeks to expand its international presence in mining.
Diversifying into Mining
In Brazil, discussions will encompass mining, food processing, and aviation sectors, while in Chile, the primary focus will be on lithium, a crucial element for electric vehicle (EV) batteries.
“This aligns with the Kingdom’s direction towards expanding the production of EVs,” a Saudi government statement said.
Strategic Meetings and Collaborations
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayaf is scheduled to arrive in Brazil on Monday. He will then proceed to Chile, the world's second-largest producer of lithium, the following Sunday.
In Brazil, Alkhorayaf will engage with agricultural and industrial groups, including Minerva Foods, JBS, and BRF SA. He will also hold talks with the Brazilian Mining Association (IBRAM) and mining giant Vale.
In Chile, Alkhorayaf will meet with his counterpart Aurora Williams, as well as representatives from major mining companies Antofagasta and the state-run Codelco. Codelco is actively seeking private sector partners to launch lithium projects.
Potential Partnerships
One potential partnership on the horizon is with Saudi Arabia’s Almar Water Solutions. In June, Almar’s CEO expressed interest in collaborating with Codelco on its planned Maricunga lithium mining project.
Economic Diversification Strategy
Long dependent on oil, Saudi Arabia aims to leverage lithium to help diversify its economy and transform into a hub for EV manufacturing. This strategy includes international mining ventures to secure access to vital minerals such as copper, cobalt, nickel, and lithium.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), and the Kingdom’s Mining Company, Ma’aden, which is 67% owned by the PIF, have formed a joint venture called Manara Minerals to invest in mining assets abroad.
In a related development, Brazil’s Minister for Energy, Alexandre Silveira, announced last month that the PIF plans to invest $15 billion in Brazil in sectors like green hydrogen, infrastructure, and renewable energy.
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