Saudi Arabia And Brazil Forge Ahead With Mining Sector Investment Talks

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

Saudi Arabia is rapidly developing its mining sector, which holds an estimated SR9.4 trillion worth of mineral resources. To attract investors, the Kingdom has improved the 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 of Industry and Mineral Resources launched the Exploration Empowerment Program (EEP), allocating $182 million to reduce exploration investment risks and accelerate innovative exploration. This initiative aims to transform Saudi Arabia into a prominent player in the global mining industry.

Alkhorayef's visit to Brazil included meetings with key figures like Petrobras CEO Magda Chambriard. Discussions focused on 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. This partnership 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.

Technological Advancements and Sustainability

The discussions also emphasized the importance of modern technologies in mining projects. These technologies ensure more efficient production and environmental sustainability, aligning with the goal of reaching 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.

Future Collaborations

Bartolomeo extended an invitation to the Saudi delegation to visit Vale's mines in Carajas to learn about their best mining practices. This invitation aims to further strengthen collaboration between the two nations.

Vice Minister for Mining Affairs at the Ministry of Industry and Mineral Resources Eng. Khalid bin Saleh Al-Mudaifer attended these meetings. The discussions underscored the strong relationship between Saudi Arabia and Brazil in the mining sector.

National Minerals Program

The Kingdom recently announced the National Minerals Program to enhance mineral supply chains' quality and efficiency. This program ensures continuity for local industries and major projects with plans to invest SR120 billion in basic and strategic mineral industries.

To help investors make informed decisions, Saudi Arabia provides comprehensive geological data through a digital platform. This platform is continuously updated to reflect new findings and developments.

Alkhorayef's meetings during his visit to Brazil are part of a broader tour that includes Chile from July 22 to 30. The aim is to strengthen bilateral ties, attract investment to Saudi Arabia, and explore mutual investment opportunities in industrial and mining sectors.

With inputs from SPA