China to cut import tariffs on some recycled copper and aluminum raw materials
The Ministry of Finance announced adjustments to various import tariff categories, effective Jan. 1.
Saudi Arabia aims to gain control of Bahrain’s aluminum smelter, furthering its plan for mining and metals to become a “third pillar” of the kingdom’s economy.
State-controlled Saudi Arabian Mining Co., known as Ma’aden, announced a series of deals this week involving Aluminium Bahrain B.S.C., or Alba. When those deals close, the Saudi company “hopes to be a majority shareholder in Alba,” Ma’aden chief executive officer Bob Wilt said in an interview in Riyadh.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman has put metals at the center of his Vision 2030, with Ma’aden tasked with growing the domestic industry. Ma’aden is targeting Alba as part of a bet that aluminum will prove crucial to both the energy transition and the oil-rich kingdom’s plans to diversify its economy.
“I’m very bullish on aluminum,” Wilt said. “The energy transition doesn’t happen without aluminum, so if we want to be a critical minerals and processing hub, we’ve got to control the feedstock.”
The deals announced over the past few days include Ma’aden acquiring a 21% stake in Alba from Saudi Basic Industries Corp. for over $1 billion. Ma’aden is also set to be issued new shares in Alba in exchange for its Saudi aluminum assets under a proposed merger agreement with the Bahrain firm. Ma’aden’s final stake in Alba will depend on due diligence, Wilt said.
“When we have the combination of us and Alba, and our growth plans, we’re easily in the top five” for global aluminum production, the CEO said.
As part of Saudi’s metals and mining drive, Ma’aden has also partnered with the kingdom’s powerful sovereign wealth fund to create Manara Minerals, an investment vehicle to buy up overseas assets. Manara’s first deal was snapping up a 10% stake in Vale SA’s base metals business.
After that “the phones started ringing and everybody’s interested” in Saudi Arabia’s metals plans, said Wilt, who is also acting CEO of Manara. “The world sees that Saudi Arabia is serious about making investments globally in mining assets and resources.”
For its next deal, Manara’s priority is getting more access to copper, Wilt said.
Manara was among the suitors considering bids for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, people familiar told Bloomberg in April. The firm is also in talks to acquire a stake in a Pakistan copper and gold mining project, Bloomberg reported the same month.
(By Matthew Martin)
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