The Manara Minerals of Saudi Arabia Explores Investments in Zambia’s Critical Minerals
Manara Minerals, a joint venture between Saudi Arabian Mining Company (Ma’aden) and the kingdom’s $925 billion Public Investment Fund (PIF), is exploring investment opportunities in Zambia’s critical minerals sector. According to Zambia’s Mines Minister, Paul Kabuswe, this development follows the signing of a memorandum of understanding (MoU) between Zambia and Saudi Arabia. In order to collaborate on mineral exploration.
Additionally, Kabuswe announced that Manara has expressed interest in Zambia’s minerals during a mining conference in Riyadh. With that being said, specific projects are yet to be identified. Kabuswe said: “They (Manara) are interested, but we do not know which ones yet”. Hinting at the potential of a formal mining deal announcement this year.
Saudi Arabia’s Strategic Push for Critical Minerals
Saudi Arabia is actively pursuing critical minerals like copper and lithium as part of its Vision 2030 strategy. Led by Crown Prince Mohammed Bin Salman, the kingdom aims to diversify its economy away from oil dependency.
Manara is reportedly in discussions to acquire a minority stake in the Zambian copper and nickel assets of Canada’s First Quantum Minerals. First Quantum, Africa’s second-largest copper producer, has confirmed it is exploring the benefits of a minority stake sale in Zambia as part of its strategic priorities for the year.
Zambia’s New Mining Strategy
Zambia is maximising its efforts to ensure better terms in mining deals. Furthermore, the country is seeking up to 30% shareholdings in new projects. While this policy has received different reactions from investors, Kabuswe remains optimistic about its long-term benefits. Kabuswe declared: “We no longer want those agreements where we have 10% or 15%”.
The country is also engaging with global mining giants like Barrick Gold, Ivanhoe Mines, and Chinese investors to explore new projects. Moreover, Zambia has launched a copper trading unit in partnership with Swiss-based commodities trader Mercuria to maximise government revenues.
Zambia aims to better control its share of mining profits by prioritising metal output over cash dividends. The country is also committed to regaining its position as a leading copper producer, with a goal of increasing copper output to 3 million metric tons within the decade.
Read this article for more information.
