Zambia looks to UAE and Saudi Arabia to back copper expansion
The African nation aims to increase copper output to a record above 1 million tons this year.
Chile’s Codelco and Saudi Arabia are engaged in early-stage discussions about potential joint investments in the copper sector, the state-owned miner’s chairman Maximo Pacheco said on Friday.
The collaboration could also extend to lithium, as Saudi Arabia seeks to import the battery metal from Chile for domestic processing.
“We would be very open to considering joint investment opportunities,” said Pacheco in an interview with Reuters at the kingdom’s annual Future Minerals Forum.
Chile, the world’s second-largest producer of lithium after Australia and home to the largest known deposits of the coveted battery metal, opened more than 20 lithium salt flats to private investors last year.
According to Pacheco, discussions between Codelco and Saudi Arabia have also touched on technology transfers, with a particular focus on Saudi Arabia’s expertise in desalination. The parties further explored the potential for incorporating advanced technologies, including artificial intelligence, into mining operations.
Saudi Arabia has set an ambitious goal of becoming a global hub for battery and electric vehicle manufacturing. As part of its broader strategy to diversify the economy away from oil and gas, the kingdom is deploying significant capital to develop its mining and industrial sectors.
Industry and Mineral Resources Minister Bandar bin Ibrahim Alkhorayef previously announced plans to import metals and manufacture batteries using both imported and locally sourced materials.
“The beauty about the mining sector here in Chile, unlike some other countries, is that you have variety,” Alkhorayef said last year.
“You have large, medium, and small companies. It’s a unique situation. Normally you find only large players, and, sometimes you can find good assets that are medium-sized where they can be complemented.”
Saudi Arabia is pursuing stakes in foreign mining operations through Manara Minerals Investment Co., a joint venture between the country’s $925 billion Public Investment Fund (PIB) and the Saudi Arabian Mining Company (Ma’aden).
Manara’s notable international ventures include a 2023 acquisition of a 10% stake in Vale Base Metals, the $26 billion copper and nickel spin-off from Vale. The kingdom is trying to secure a stake in Pakistan’s $7 billion Reko Diq copper and gold mine, owned 50% by Barrick Gold and 50% by Pakistan’s federal and provincial governments.
Currently, Saudi Arabia imports most of its copper to meet domestic demand, which stands at 365,000 tonnes annually and is expected to more than double by 2035.
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