Maaden to finance Vale’s 10% acquisition from own resources

Maaden headquarters

Saudi Arabian Mining Co. (Maaden) said today, July 30, that its subsidiary, Manara Minerals Investment Company (Manara), will acquire 10% of Vale Base Metals Ltd. using its own funds.

In a statement on Tadawul, Maaden said that Vale's enterprise value amounts to $26 billion (SAR 97.5 billion).

Vale has mega projects in the world's most important mining regions, including Canada, Brazil, and Indonesia.

Accordingly, Manara's investment in Vale will mainly contribute to helping the company expand its production of copper and nickel across its asset portfolio, as these metals are essential to supporting the global clean energy transition.

After fulfilling the regulatory requirements, Manara will be able to own a 10% stake in Vale, the statement clarified, expecting that the transaction procedures will be completed during Q1 2024 and that any financial impact will be shown as of H1 2024.

This step comes within the framework of Maaden's plans to boost its supplies of strategic minerals and enable the Kingdom to play a greater role in global supply chains supporting the energy transition.

In January, Ma’aden signed a joint venture agreement with the Kingdom’s sovereign wealth fund to establish a new company that aims to invest in mining assets globally to secure strategic minerals that are essential for Saudi Arabia, Argaam earlier reported.

Last Friday, Brazilian miner Vale signed a binding agreement with Manara Minerals, the joint venture between the Public Investment Fund (PIF) and Saudi Arabian Mining Co. (Maaden), to acquire a 10% stake in the former’s base metal unit.

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