Saudi Public Investment Fund is set to spin off the mining firm Manara
The Public Investment Fund of Saudi Arabia intends to separate its mining investment firm, Manara Minerals, according to the kingdom’s mining minister, as it aims to rejuvenate its efforts in securing investments overseas.
Saudi Arabia, like other economies in the Middle East, is striving to secure vital minerals such as copper and lithium, which are crucial for electric vehicles and renewable energy, as it aims to lessen its reliance on oil.
Manara, a collaboration between the Saudi Arabian Mining Company, known as Maaden, and the $925 billion Public Investment Fund (PIF), was founded in 2023 to invest in essential minerals internationally.
However, despite its bids for assets throughout Africa and Asia, it has thus far finalized only one transaction: a $2.5 billion acquisition of a 10% stake in Vale Base Metals, which was spun off from the Brazilian iron ore giant Vale, set to open a new tab in 2024.
Industry and Mineral Resources Minister Bandar Al-Khorayef stated that separating Manara from the PIF would enhance its focus. “This will transform the company’s culture from merely being an investment vehicle to possessing greater technical capability,” Al-Khorayef shared with Reuters during an interview at the Future Investment Forum event.
“PIF is a significant investor; however, they lack expertise in mining.”
He did not provide any timeline for a spin-off, but mentioned that discussions regarding new shareholders in Manara were ongoing, noting that they could involve either Saudi or foreign investors.
In Saudi Arabia, the drive for international investments and the advancement of mining are integral to Crown Prince Mohammed bin Salman’s comprehensive strategy to diversify the economy beyond oil.
Riyadh assesses its unexploited mineral resources, which encompass phosphate, gold, bauxite, and rare earth elements, to be valued at approximately $2.5 trillion.
Maaden is exploring rare earths and developing technology to extract lithium from seawater.
