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  • Ahmed Saleh

Ma'aden and PIF Partner for Strategic Iron Ore, Copper, Nickel Investments

• Ma'aden will have 51% of the company's shares, while PIF will hold 49%.

• As a non-operating partner taking minority equity stakes in mining assets worldwide, the company will initially invest in iron ore, copper, nickel, and lithium.

• The agreement is in line with Ma'aden's 2040 Strategy to improve and diversify its upstream mining capabilities and assets, as well as PIF's aim to create strategic economic alliances.

During the opening of the Future Minerals Forum, the Public Investment Fund (PIF) and the Saudi Arabian Mining Company (Ma'aden), one of the world's fastest-growing mining companies, announced the signing of a joint venture (JV) agreement to create a new company that aims to invest in mining assets globally in order to secure strategic minerals that are crucial for Saudi Arabia's industrial development as well as the resilience of global supply chains.

The incorporation of the company is pending approval from the appropriate authorities and is subject to meeting specific conditions outlined in the joint venture agreement. In a significant development, Ma'aden, the Saudi Arabian mining company, has announced that it will hold a majority stake of 51% in the company, while the Public Investment Fund (PIF) will possess a minority stake of 49%. This ownership structure marks a strategic partnership between the two entities as they seek to capitalize on the opportunities within the industry. In a significant financial development, the company has announced that its capital will reach an impressive milestone of USD 50 million. This substantial amount is expected to provide the company with a solid foundation for future growth and expansion. The company has set its sights on making initial investments in iron ore, copper, nickel, and lithium, adopting a non-operating role as a minority equity partner. Saudi Arabia's strategic move to secure the supply of critical minerals for its domestic mineral downstream sectors is set to position the country as a crucial player in bolstering global supply-chain resilience. By ensuring the physical offtake of these essential minerals, Saudi Arabia aims to enhance supply security and solidify its role as a key partner in the pursuit of a robust global supply chain.

In a recent statement, Yazeed Alhumied, the Deputy Governor and Head of MENA Investments at the Public Investment Fund (PIF), highlighted the formidable collaboration between PIF and Ma'aden. Alhumied emphasized that the two entities bring together a wealth of investment expertise and a profound understanding of various sectors. In a move that is set to bolster Saudi Arabia's strategic position on the global stage, a new company has emerged, poised to make a substantial contribution to the Kingdom's role as a crucial link in the global supply chain. This development aligns seamlessly with the strategic vision of the Public Investment Fund (PIF), which aims to foster the growth of key industries and propel Saudi Arabia towards further economic prosperity.

In its role as a catalyst for Vision 2030, the Public Investment Fund (PIF) remains steadfast in its mission to propel the expansion of emerging sectors and enterprises, all the while making significant contributions to job generation, technology dissemination, and the localization of knowledge. These efforts are aimed at constructing a thriving and sustainable economy within the borders of Saudi Arabia.

In a statement, Robert Wilt, the Chief Executive Officer of Ma’aden, expressed his enthusiasm for the latest development, emphasizing its significance for the company's efforts in advancing the mining sector within Saudi Arabia. Wilt further highlighted the strategic role that the Kingdom is poised to play as a crucial partner in securing the metals that will shape the future. In the pursuit of a global energy transition, the strategic minerals crucial for renewable energy and battery storage play a pivotal role. By placing our emphasis on these minerals, we aim to establish a strong position within the global commodity value chain. This is particularly significant as the industry faces significant supply limitations alongside surging demand.

In a statement released today, it was expressed with great pride that the organization is actively taking part in the crucial task of driving economic diversification and fostering growth in Saudi Arabia. By focusing on developing a skilled workforce and ensuring a prosperous future for the nation, the organization is playing a pivotal role in the successful implementation of Vision 2030.

In a move that aligns perfectly with the mission of the Public Investment Fund (PIF), an agreement has been reached to establish strategic economic partnerships. The aim of these partnerships is to generate sustainable returns and tap into the immense potential for growth in promising sectors. This development is in complete harmony with Vision 2030, a comprehensive plan that outlines Saudi Arabia's ambitious goals for the future. In line with Ma'aden's 2040 Strategy, the company is placing emphasis on upstream mining operations and seeking opportunities to explore upcoming minerals. Additionally, Ma'aden aims to establish collaborations with leading global mining enterprises.



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