Saudi Official Discusses Opportunities In Mining Sector With Brazilian Companies

RIYADH: A recent high-level meeting in the Brazilian city of Sao Paulo discussed how the Saudi mining sector is expected to benefit substantially from increased cooperation with Brazilian companies.

The dialogue between the Kingdom’s deputy minister of industry and mineral resources, Khalid Al-Mudaifer, and the CEO of Vale Mining Co., Eduardo Bartolomeo, underscored Saudi Arabia’s commitment to fostering international partnerships and attracting investment in its burgeoning mining industry.

Discussions centered on the expansive investment opportunities available to Brazilian companies in the Kingdom’s mining sector, a statement by the ministry said. 

Saudi Arabia is making deliberate strides to develop its mining sector, which has an estimated $2.5 trillion worth of untapped mineral resources. 

The nation aims to transform mining into a third pillar of its industrial division, enhancing its national economy. 

Strengthening international partnerships is seen as essential to overcoming challenges in the mineral supply chain.

This comes after the Kingdom recently acquired a 10 percent stake in Vale Basic Metals Co., facilitated through Manara Minerals Co. — a joint venture between the Saudi sovereign wealth fund, known as the Public Investment Fund, and the Saudi Arabian Mining Co., known as Ma’aden.

A key focus of the meeting was the adoption of modern technologies in mining projects to enhance production efficiency and promote environmental sustainability, intending to reach carbon neutrality in the coming decades.

Bartolomeo praised the Kingdom’s remarkable development and economic resurgence, highlighting the significant initiatives and support to enhance the country’s mining sector. 

He acknowledged the facilitation of Vale’s operations, particularly the establishment of the iron pelletizing project in Ras Al-Khair, and invited the Saudi delegation to visit Vale’s mines in Carajas.

Brazil’s rich mining resources and extensive expertise in mineral exploration make it a valuable partner for Saudi Arabia. 

The two nations have maintained strong bilateral relations for over 50 years, with significant cooperation in the energy and mineral sectors.

The minister also held talks with Magda Chambriard, the CEO of Brazilian petroleum company Petrobras, to explore cooperation opportunities in the manufacturing and petrochemical sectors. 

The discussions were part of Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef’s visit to Brazil, which also includes a tour of Chile to strengthen bilateral ties and explore mutual investment opportunities in various industrial sectors.