Saudi Arabia seeks stronger ties with Brazil in mining sector

• Discussions centered on the expansive investment opportunities available to Brazilian companies in the Kingdom’s mining sector
• Kingdom recently acquired a 10% stake in Vale Basic Metals Co.

RIYADH: A high-level Saudi delegation continued discussions in Brazil on Sunday to enhance bilateral ties and advance Saudi Arabia’s mining sector.

On July 28, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visited Vale’s Carajas mines, where he was briefed on advanced technologies used in mineral extraction and processing, including remote mine management and driverless trucks, according to the Saudi Press Agency.

Accompanied by Deputy Minister of Industry and Mineral Resources Khalid Al-Mudaifer and other industry leaders, Alkhorayef engaged with Vale officials on transferring knowledge and expertise, particularly in mining within rainforests and nature reserves, and on forming effective partnerships with local communities. 

Discussions also covered Vale’s expansion plans in Saudi Arabia and potential cooperation in developing the Carajas mines, which produce over 300 million tons of iron ore annually.

“I visited Vale’s Carajas mining complex in the Brazilian Amazon, one of the largest iron ore production sites globally, and explored their innovative methods in mineral extraction and processing,” Alkhorayef noted in a post on his X account.

This visit is part of Alkhorayef’s broader trip to South America, which also included a visit to Chile to strengthen bilateral ties and explore mutual investment opportunities in various industrial sectors. 

Saudi Arabia is making significant strides to develop its mining sector, which holds an estimated $2.5 trillion in untapped mineral resources, to establish mining as a third pillar of its industrial division to boost the national economy.

During a recent meeting in Sao Paulo, Al-Mudaifer discussed how increased cooperation with Brazilian companies could benefit Saudi Arabia’s mining sector. 

In talks with Vale Mining Co. CEO Eduardo Bartolomeo, Al-Mudaifer emphasized Saudi Arabia’s commitment to fostering international partnerships and attracting investment in its emerging mining industry. 

The discussions focused on investment opportunities for Brazilian companies in Saudi Arabia’s mining sector, with a key emphasis on adopting modern technologies to enhance production efficiency and environmental sustainability, aiming for carbon neutrality in the coming decades.

Bartolomeo praised Saudi Arabia’s remarkable development and economic resurgence, noting Vale’s support, particularly in establishing the iron pelletizing project in Ras Al-Khair. 

Al-Mudaifer also met with Petrobras CEO Magda Chambriard to explore collaboration in the manufacturing and petrochemical sectors.

Saudi Arabia’s strategic acquisition of a 10 percent stake in Vale Basic Metals Co., through Manara Minerals Co. (a joint venture between the Public Investment Fund and Ma’aden), underscores its commitment to strengthening international partnerships. 

Vale is also investing over SR4 billion ($1.06 billion) to develop a factory and logistics center for iron pellet production in Ras Al-Khair Industrial City, with a capacity of up to 4 million tons per year.

Brazil’s rich mining resources and extensive expertise make it a valuable partner for Saudi Arabia. As the world’s second-largest producer of iron ore, Brazil has a long history of mining, with more than 3,000 mines. 

The two nations have enjoyed strong bilateral relations for over 50 years, with significant cooperation in the food, energy, and mineral sectors.