The Minister of Industry and Mineral Resources of Saudi Arabia, Bandar Al-Khorayef, recently held discussions with Eduardo Bartolomeo, the Chief Executive Officer of Vale, a leading Brazilian mining company. Their conversation was centered around the potential for investment in the thriving Saudi mining industry by Brazilian enterprises.
Throughout the meeting, the spotlight was on the various advantages and facilities available to investors in the Kingdom. Al-Khorayef highlighted the robust bilateral ties in the mining domain, exemplified by Saudi Arabia’s acquisition of a significant share in Vale via Manara Minerals Company, a venture combining efforts of the Public Investment Fund (PIF) and Maaden.
Eng. Khalid Al-Mudaifer, the Vice Minister for Mining Affairs, also took part in the discussions that delved into the integration of cutting-edge technologies in mining ventures. These endeavors aim at boosting productivity while adhering to environmental standards, with an ambition to achieve carbon neutrality in future years.
Bartolomeo lauded the Kingdom’s swift progress and economic advancements, acknowledging the support provided to Vale’s investment projects like the iron pelletizing operation in Ras Al-Khair. He further extended an invitation to the Saudi officials to visit Vale’s Carajas mines to witness their operational excellence first-hand.
In a separate dialogue, Al-Khorayef explored potential collaborative avenues in manufacturing and petrochemicals with Magda Chambriard, the head of Brazilian Petrobras. The conversations underscored Brazil’s rich mineral resources and expertise, which are pivotal to its partnership with Saudi Arabia—a relationship that spans over five decades, particularly strong in the energy and minerals sectors.
Saudi Arabia has been actively developing its mining sector, which boasts an approximate SR9.4 trillion in untapped mineral wealth. With an ambition to transform mining into a key industrial pillar, the Kingdom has been enhancing its investment climate by offering attractive incentives such as significant financing options, tax exemptions, and provisions for complete foreign ownership.
April 2024 marked the launch of the Exploration Empowerment Program (EEP) by the Saudi Ministry, dedicating $182 million to mitigate exploration risks and foster exploration innovation. This initiative, along with the provision of detailed geological data via a digital platform, has catapulted Saudi Arabia to a prominent position in the global mining landscape.
Moreover, the recently unveiled National Minerals Program is set to improve the efficiency and quality of mineral supply chains, ensuring their availability for local industries and large-scale projects, with an investment strategy of SR120 billion directed towards base and strategic mineral industries.
