| The Public Investment Fund (PIF) and Saudi Arabian Mining Co. (Ma’aden) are shaking up the global mining industry with the creation of a major company. The PIF will own a 49% stake in this mining venture with Ma’aden holding the remaining 51%. With a capital of USD 50 million, the new company will primarily focus on investing in iron ore, copper, nickel, and lithium mining assets worldwide as a non-operating partner taking minority equity positions. This will provide physical offtake of critical minerals to ensure supply security for domestic mineral downstream sectors, while also positioning Saudi Arabia as a key partner in achieving global supply chain resilience. The kingdom currently produces copper and has exploration projects in, but not yet major production of, iron ore, nickel, and lithium.
The move is part of the government’s diversification strategies and echoes recommendations from key observers, such as the International Monetary Fund (IMF), to use the current favourable energy commodity cycle to invest in other sectors.
The IMF recommends “using additional revenues from higher oil prices to rebuild buffers and strengthen policy space. Given the available fiscal space, targeted support for the most vulnerable can be prioritised, leveraging the progress made on digitalisation.” In a recent report on GCC prospects, the IMF said that while Saudi Arabia and its regional neighbours have benefited from higher, albeit volatile, oil and gas prices, numerous risks still cloud the outlook – notably a slowdown in the global economy. “In this context, the reform momentum established in previous years should be maintained – irrespective of the level of hydrocarbon prices,” said the IMF.
Indeed, investment in the mining sector is vital as it will accelerate the development of renewable energies, which rely heavily on key metals and minerals. | 
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