Saudi Arabia’s Manara Minerals investment fund is considering the establishment of a metals trading division to support its ventures in overseas mining companies, according to the fund’s acting CEO, Robert Wilt. Manara Minerals, a joint venture between state-owned miner Ma’aden and the Public Investment Fund (PIF), was created as part of Saudi Arabia’s economic diversification strategy.
Wilt mentioned at the Future Minerals Forum in Riyadh that the initial phase involves securing investments, but trading activities are anticipated to manage the off-take of minerals.
Manara aims to avoid direct competition with major players like Glencore or Trafigura, focusing on managing its own book. The fund’s primary focus is on sourcing iron ore, lithium, copper, and nickel to contribute to Saudi Arabia’s goal of becoming a metals processing hub.
Manara’s recent investment involved acquiring a 10% stake in Vale’s $26 billion copper and nickel spin-off, Vale Base Metals. Additionally, discussions are underway regarding a potential stake purchase in Pakistan’s Reko Diq mine, currently co-owned by Barrick Gold and the Pakistani government.
Wilt highlighted that Manara is evaluating various opportunities following the Vale deal closure, and Reko Diq is among the potential ventures.
