The WSJ reported that the USA and Saudi Arabia are in talks to secure metals in Africa needed to help them with their energy transitions.

Yesterday, the Wall Street Journal reported that a state-backed Saudi venture would buy stakes in mining assets worth US$15Bn in African countries including the DRC, Guinea and Namibia, which will permit US companies to have rights to buy some of the production. The White House is seeking the financial backing of other sovereign-wealth funds in the region, but talks with Saudi Arabia have progressed the farthest, the WSJ noted.

The move is the latest in increasing Saudi Arabian interest in securing critical material access. In July 2023, Manara Minerals, a new joint venture established to invest in mining assets globally between Saudi Arabian Mining Company (Ma’aden) and the country’s Public Investment Fund (PIF), took a 10% stake in Vale’s base metal business. That deal also saw US involvement, with US investment firm Engine No. 1 also taking a 3% equity interest. Also this year, Saudi Arabia has announced a partnership with the UK government to develop critical minerals supply chains and agreed joint investments to develop rare-earth resources with Japan.  

Saudi Arabia’s Vision 2030 aims to form strategic international partnerships and raise the competitiveness and productivity of its national mining companies, boosting their contribution to the mining sector’s growth, as well as to the localization of knowledge and expertise. The country is also planning a number of structural reforms, which include stimulating private sector investments by intensifying exploration, building a comprehensive database of the Kingdom’s resources, reviewing the licensing procedures for extraction, investing in infrastructure, developing funding methods and establishing centres of excellence.