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Saudi Arabia is in the final stages of negotiations to acquire a stake in a Zambian copper mine, underlining the kingdom’s ambitions to diversify its economy away from oil.
This significant development comes as the world’s largest oil exporter, under the leadership of Crown Prince Mohammed bin Salman’s Vision 2030 plan, seeks to establish itself as a major player in the global mining sector.
“We are looking at Zambia, we are talking with a company there, with a mine there, so those are pretty advanced stage discussions,” said Robert Wilt, CEO of Saudi Arabia’s state-owned mining giant Ma’aden, during the Future Investment Forum conference in Riyadh.
Industry insiders suggest the deal, expected to be finalized by year-end, could involve Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, acquiring a 15-20% stake in Canadian miner First Quantum Minerals’ Zambian copper and nickel assets. The estimated value of the stake falls between $1.5 billion and $2 billion.
“Obviously, Africa is mineral rich with a lot of copper in the copper belt,” Wilt explained. “So it just makes perfect sense, because of the geographical proximity and our desire for copper to be looking in Africa.”
Manara Minerals has already made significant investments in securing vital minerals, a key pillar of Vision 2030. The company’s first major international venture was a 10% stake acquisition in Vale Base Metals, a subsidiary of Brazilian mining giant Vale, in 2023.
Wilt highlighted copper’s growing importance for Manara, particularly in the context of the global energy transition. “Copper, like aluminum, is a base metal that will be increasingly in demand,” he said. “While niche battery metals are important, copper is essential for the successful development of downstream industries.”
This move by Saudi Arabia signifies a strategic shift towards a more diversified economy, one less reliant on the volatile oil market. The acquisition of a stake in Zambia’s copper mine is a significant step in that direction.
