Wednesday 11 January 2023

#SaudiArabia launches mining fund in effort to reduce oil dependency | Financial Times

Saudi Arabia launches mining fund in effort to reduce oil dependency | Financial Times

Saudi Arabia has launched a mining fund that plans to invest up to $15bn of capital in overseas assets according to people familiar with the details, as the country works to reduce its dependence on fossil fuels. 

The venture, 51 per cent owned by Saudi state-owned miner Ma’aden, with the remainder owned by the country’s Public Investment Fund, will take non-operating minority stakes in mining projects internationally, the two companies said on Wednesday. 

That will help Saudi Arabia, which is the world’s second-largest oil producer, to secure resources such as iron ore, copper, nickel and lithium for domestic mineral processing and other industrial activities like steelmaking. 

The companies said that the fund’s initial capital would be $50mn and the two shareholders would provide just over $3bn “if additional funding is required”, according to a joint statement.

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