Saudi Arabia And Brazil Forge Ahead With Strategic Mining And Industry Investments

Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef met with Eduardo Bartolomeo, CEO of Vale, a Brazilian multinational corporation in metals and mining. They discussed investment opportunities in Saudi Arabia's mining sector for Brazilian companies. Alkhorayef highlighted the incentives and capabilities offered to investors in this sector.

During the meeting, Vice Minister for Mining Affairs Eng. Khalid bin Saleh Al-Mudaifer was present. The discussion covered the strong relationship between Saudi Arabia and Brazil in mining, which recently led to Saudi Arabia acquiring a 10% stake in Vale for basic metals through Manara Minerals Company, a joint venture between the Public Investment Fund (PIF) and Maaden.

The conversation also emphasized modern technologies' role in mining projects, aiming for efficient production and environmental sustainability. The goal is to achieve carbon neutrality in the coming decades. Bartolomeo praised Saudi Arabia's development and economic progress, particularly major development projects.

He acknowledged the significant support Vale received upon investing in the Kingdom, especially in the iron pelletizing project in Ras Al-Khair, Eastern Province. Bartolomeo invited the Saudi delegation to visit Vale's mines in Carajas to learn about their best mining practices.

Alkhorayef also met with Magda Chambriard, CEO of Petrobras, discussing cooperation opportunities in manufacturing and petrochemical industries. Brazil's vast mineral wealth and extensive mining experience make it a crucial partner for Saudi Arabia. The two countries have maintained strong relations for over 50 years, significantly cooperating in energy and minerals sectors.

Saudi Arabia is rapidly developing its mining sector with an estimated SR9.4 trillion worth of buried mineral resources. The aim is to maximize national economic benefits and establish mining as a third industry pillar. The Kingdom values international cooperation to address mineral supply chain challenges.

Incentives for Investors

To attract investors, Saudi Arabia has improved its investment environment by offering incentives such as contributing 75% of capital expenditures financing, a five-year tax exemption, and 100% direct foreign ownership. In April 2024, the Ministry launched the Exploration Empowerment Program (EEP), allocating $182 million to reduce exploration investment risks and accelerate innovative exploration.

This transformation has positioned Saudi Arabia prominently in the global mining industry. To help investors make informed decisions, comprehensive geological data is provided through a digital platform that is continuously updated.

National Minerals Program

The Kingdom recently announced the National Minerals Program to enhance mineral supply chains' quality and efficiency for local industries and major projects. Plans include investing SR120 billion in basic and strategic mineral industries.

Alkhorayef's meetings during his visit to Brazil aimed to strengthen bilateral ties further, attract investment to Saudi Arabia, and explore mutual investment opportunities in industrial and mining sectors. His delegation will also visit Chile from July 22 to 30.

With inputs from SPA