Aramco and Maaden Form Joint Venture for Mineral Exploration

Saudi Aramco and Maaden have signed a shareholders’ agreement to establish a joint venture focused on mineral exploration and hard rock mining in the Kingdom of Saudi Arabia, as announced today by the Saudi Press Agency (SPA). The partnership, owned 51% by Maaden and 49% by Aramco, will initially target copper and other critical minerals essential to the global energy transition. This initiative marks a significant step in Saudi Arabia’s strategy to diversify its economy and unlock the vast mineral potential of the Arabian Shield.

Context and Background

First announced in January 2025, the joint venture builds on the Kingdom’s broader efforts to develop a sustainable mining sector, a key pillar of Vision 2030. The exploration activities will be conducted in Zone 4, also known as the “transition zone,” within the Arabian Platform. This zone, spanning approximately 182,000 square kilometers—nearly 10% of the Kingdom’s total area—runs in a 100-kilometer-wide belt parallel to the Arabian Shield, offering a promising new frontier for mineral discovery.

According to Saudi Aramco, the venture will leverage advanced technologies, including artificial intelligence and high-performance computing, to identify areas with the highest probability of containing copper and other valuable minerals. This approach aims to accelerate the transition from regional analysis to site identification and discovery, supporting long-term sector growth.

Key Details

The joint venture will prioritize copper, a metal critical to electric vehicles, power grids, energy storage, and renewable energy systems. Copper currently represents over 20% of the extracted metals market, valued at $1.2 trillion, with a market size of approximately $250 billion expected to exceed $400 billion by 2035. Additionally, the venture will explore other energy transition minerals, including zinc, lead, and rare earths, which are vital for future industries.

The agreement between the partners is subject to customary conditions, including internal and regulatory approvals and competition clearance. The creation of the joint venture is expected to enhance the Kingdom’s role in the global minerals value chain and meet rising demand for energy transition resources.

Implications and Impact

This partnership underscores Saudi Arabia’s commitment to becoming a global leader in mining and mineral processing, aligning with Vision 2030’s goal of economic diversification. By leveraging Aramco’s technological expertise and Maaden’s mining capabilities, the venture is poised to unlock significant value from the Kingdom’s untapped mineral resources, attracting foreign investment and creating high-skilled jobs. The focus on critical minerals also positions Saudi Arabia as a reliable supplier in the global shift toward clean energy technologies, enhancing its geopolitical and economic standing.

Vision 2030 Alignment

The joint venture exemplifies Vision 2030’s ambition to transform Saudi Arabia into a mining powerhouse, reducing reliance on oil and fostering sustainable development. By investing in advanced exploration technologies and targeting energy transition minerals, the Kingdom is building a future-ready economy that supports global climate goals while ensuring long-term prosperity for its citizens. This initiative is a testament to Saudi Arabia’s proactive leadership in shaping the future of energy and resources, reinforcing its role as a key partner in the global energy transition.

20 Questions

Q1. What is the primary purpose of the Saudi Aramco-Maaden joint venture?

A1. The joint venture aims to explore and extract critical minerals, especially copper, in Saudi Arabia, supporting the global energy transition and diversifying the Kingdom’s economy.

Q2. Who are the two companies forming the joint venture?

A2. Saudi Aramco, the national oil company, and Maaden, the Saudi Arabian Mining Company, are partnering, with Maaden holding 51% and Aramco 49% ownership.

Q3. What minerals will the joint venture focus on?

A3. The primary focus is copper, a metal vital for electric vehicles and renewable energy systems. Additionally, zinc, lead, and rare earth elements will be explored.

Q4. Where will the exploration activities take place?

A4. Activities will occur in Zone 4, known as the “transition zone,” within the Arabian Platform, an area spanning 182,000 square kilometers parallel to the Arabian Shield.

Q5. When was the joint venture first announced?

A5. The project was first announced in January 2025, and the shareholders’ agreement was signed on August 19, 2026, according to the Saudi Press Agency.

Q6. Why is copper considered critical?

A6. Copper is essential for electric vehicles, power grids, energy storage, and renewable energy systems, making it a key component in the transition to cleaner energy.

Q7. What is the estimated market size for copper?

A7. The copper market is currently valued at approximately $250 billion and is expected to surpass $400 billion by 2035, according to industry reports.

Q8. How will the joint venture use technology?

A8. It will employ advanced algorithms, artificial intelligence, and high-performance computing to identify high-probability mineral zones, speeding up discovery and analysis.

Q9. What is the significance of the Arabian Shield?

A9. The Arabian Shield is a geological formation rich in minerals, and the adjacent transition zone offers new opportunities for discovering valuable resources essential to energy transition.

Q10. How does this joint venture align with Vision 2030?

A10. It supports Vision 2030’s goals of economic diversification, developing the mining sector as a third pillar of the economy, and creating sustainable industries.

Q11. What conditions must be met before the joint venture becomes operational?

A11. The agreement is subject to internal and regulatory approvals, including competition clearance, and other customary conditions for such corporate agreements.

Q12. What role does Maaden play in the joint venture?

A12. Maaden, the majority owner, brings its extensive mining expertise and experience in mineral processing, playing a central role in operations and strategy.

Q13. What role does Saudi Aramco play in the joint venture?

A13. Aramco contributes its technological capabilities, advanced data analytics, and vast resources, supporting the venture’s exploration and technological initiatives.

Q14. How does this partnership benefit Saudi Arabia’s economy?

A14. It enhances the Kingdom’s mineral wealth utilization, attracting foreign investment, creating jobs, and reducing dependence on oil revenues, aligning with economic diversification.

Q15. What is the “transition zone”?

A15. The transition zone is a geological area on the Arabian Platform parallel to the Arabian Shield, offering new opportunities for mineral discovery.

Q16. What is the significance of the 182,000 square kilometers?

A16. This area, nearly 10% of Saudi Arabia’s territory, represents a vast underexplored region with high potential for finding critical minerals.

Q17. How might this joint venture impact global mineral supply chains?

A17. By developing new sources of copper and other critical minerals, it can help meet global demand, diversify supply chains, and support the energy transition worldwide.

Q18. What is the expected timeline for production?

A18. The timeline is not specified, as exploration is in early stages. The venture will first identify target areas, then conduct exploration studies, potentially leading to discoveries and eventual mining.

Q19. How does this venture support environmental sustainability?

A19. By focusing on minerals needed for clean energy, it enables the production of renewable technologies, contributing to global climate goals and sustainable development.

Q20. What are the future prospects for this joint venture?

A20. The venture is expected to strengthen Saudi Arabia’s mining sector, increase its role in global mineral value chains, and pave the way for further technological advancements in exploration.

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