Saudi Mining Company Plans R$ 8 Billion Investment in Brazil

Thu 16th Jan, 2025

The Saudi Arabian Mining Company, known as Ma'aden, has announced its intention to invest R$ 8 billion (approximately US$ 1.25 billion) in Brazil. This strategic investment will focus on geological research and partnerships with local mining companies.

The announcement was made by Alexandre Silveira, Brazil's Minister of Mines and Energy, during the Future Minerals Forum held in Riyadh, where representatives from over 50 countries are gathering to discuss mining and resource management.

As part of its Brazilian operations, Ma'aden plans to establish an office in São Paulo within the forthcoming months. Minister Silveira emphasized the necessity for enhanced understanding of Brazil's geological resources to facilitate sustainable exploration and utilization of the country's mineral wealth.

While the exact minerals targeted for exploration have not been specified, it is reported that Ma'aden is particularly interested in strategic minerals critical for energy transition, including copper, nickel, lithium, cobalt, manganese, and graphite.

During the forum, Silveira held discussions with Bandar Alkhorayef, the Saudi Minister of Mining, concerning the establishment of the new office, which was initially proposed in a prior meeting in Davos, Switzerland.

Brazil's mining sector has seen increased interest from international players. Earlier this year, Vale S.A., a leading Brazilian mining company, concluded a deal to sell a 10% stake in its subsidiary Vale Base Metals to Manara Minerals, a joint venture between Ma'aden and the Saudi Public Investment Fund, for US$ 2.5 billion (approximately R$ 15 billion).

According to an executive at the Brazilian Mining Institute (Ibram), the Saudi government is implementing a long-term investment strategy in its mineral sector, aiming to diversify its resource base beyond oil. This initiative includes securing access to strategic minerals through international partnerships.

Industry experts highlighted the importance of geological prospecting and research in discovering new mineral deposits. This phase is often capital-intensive and carries significant risks; statistically, only one in a thousand surveyed areas leads to a viable mining site.

Vale remains the largest investor in geological research in Brazil, designating hundreds of millions of dollars for exploration over multi-year plans both domestically and internationally. Leading global mining companies, including Rio Tinto and BHP, also maintain robust research and development departments focused on geological studies.

Founded in 1997, Ma'aden has evolved from its initial focus on oil to a diversified mining enterprise. The company went public in 2008 and has seen increased investment from the Public Investment Fund, which now holds over 65% of its shares. Ma'aden operates across five business segments: mineral exploration, base metals (including copper and nickel), phosphate production, industrial minerals, and aluminum manufacturing.

In 2023, Ma'aden reported revenues of approximately US$ 7.9 billion, reflecting its significant role in the global mining sector.


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