Brasilia, Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef met here today with CEO of Brazilian multinational corporation engaged in metals and mining Vale Eduardo Bartolomeo, with whom he reviewed the promising investment opportunities Saudi Arabia’s mining sector offers Brazilian companies, and their opportunity to further invest in the Kingdom.
Alkhorayef highlighting the incentives and capabilities investors are offered in the mining sector. Vice Minister for Mining Affairs at the Ministry of Industry and Mineral Resources Eng. Khalid bin Saleh Al-Mudaifer attended the meeting where discussed were the strong relationship between Saudi Arabia and Brazil in the mining sector, which recently led to Saudi Arabia acquiring a 10% stake in Vale for basic metals. This investment was made through Manara Minerals Company, a joint venture between the Public Investment Fund (PIF) and Maaden.
The discussion also emphasized the importance modern technologies play in mining projects, ensuring
more efficient production and environmental sustainability, and the goal of reaching carbon neutrality in the coming decades.
Bartolomeo praised Saudi Arabia’s development and economic progress, particularly the major development projects, and acknowledged the significant support and assistance Vale received upon investing in the Kingdom, especially in the iron pelletizing project in Ras Al-Khair, in the Eastern Province.
He extended an invitation to the Saudi delegation to visit Vale’s mines in Carajas and learn about their best mining practices.
Alkhorayef also met with Brazilian Petrobras CEO Magda Chambriard, with whom he discussed cooperation opportunities in the manufacturing and petrochemical industries.
Brazil, with its vast mineral wealth and extensive mining experience, is seen as a crucial partner for Saudi Arabia. The two countries have maintained strong relations for over 50 years, cooperating significantly in the energy and minerals sectors.
Saudi Arabia is rapidly developing its minin
g sector, where there are an estimated SR9.4 trillion worth of buried mineral resources, to maximize the national economy’s benefit and establish mining as a third pillar of the industry.
The Kingdom values international cooperation and partnerships in addressing mineral supply chain challenges.
To attract investors, Saudi Arabia has improved the investment environment, including in mining, and by offering incentives such as contributing 75% of the financing of capital expenditures, a five-year tax exemption, and 100% direct foreign ownership.
In April 2024, the Ministry of Industry and Mineral Resources of Saudi Arabia launched the Exploration Empowerment Program (EEP), allocating $182 million to reduce exploration investment risks and accelerate innovative exploration. This sector transformation has positioned Saudi Arabia prominently in the global mining industry.
To help investors make informed decisions, the Kingdom provides comprehensive and continuously updated geological data through a digital
platform.
The Kingdom also recently announced the National Minerals Program to enhance the quality and efficiency of mineral supply chains and ensure their continuity for local industries and major projects, with plans to invest SR120 billion in basic and strategic mineral industries.
Alkhorayef’s meetings during his visit to Brazil at the head of a delegation that is also visiting Chile from July 22 to 30 aims to strengthen bilateral ties, attract investment to Saudi Arabia, and explore mutual investment opportunities in the industrial and mining sectors.
Source: Saudi Press Agency