Ma’aden acquires 10% of Brazilian Vale to increase supply of strategic minerals

Saudi Arabian Mining Company (Ma’aden) announced on Sunday that its joint venture Manara has signed on Thursday, 27 July 2023 a binding agreement to acquire, through a wholly owned subsidiary, 10% of Vale Base Metals Limited (“Vale”), based on an enterprise value of USD 26 billion equivalent to SAR 97.5 billion.

The company indicated that the acquisition furthers Ma’aden’s strategy of increasing the supply of strategic minerals and enabling Saudi Arabia to play a growing role in the global energy transition supply chains.

Ma’aden explained Today on Tadawul that Vale has projects in world-leading mining jurisdictions, including Canada, Brazil and Indonesia. Manara’s investment into Vale will play a key role in helping it expand the production of copper and nickel across its asset portfolio, which are critical to the development of new technologies that will benefit the global energy transition.

The Company added that Manara will be able, after fulfilling the regulatory requirements, to acquire 10% from Vale is subject to regulatory approval and other customary conditions and is expected in the first quarter of 2024.

And revealed that the transaction will be financed through Ma’aden own resources. Any financial impact of the acquisition is expected to be reflected from the first half of 2024.

Noting that Manara is a joint venture company owned by Saudi Arabian Mining Company (“Ma’aden”) and PIF in the proportions of 51% and 49%, respectively.

This comes further to the Company’s announcement on 11/01/2023 , regarding the signing of a joint venture agreement with the Public Investment Fund (“PIF”) to establish a company to invest in mining assets internationally, which has been named after publishing that announcement as Manara Minerals Investment Company (“Manara”).