Brazilian miner Vale is reportedly close to completing a deal to sell a roughly 10% stake in its $25 billion base metals unit to a joint venture between Saudi Arabia’s sovereign-wealth fund, the PIF, and the Saudi mining company Ma’aden, people familiar with the matter told the Wall Street Journal.
The PIF and Ma’aden are nearing an agreement to pay $2.5 billion for the stake, with a deal announced as soon as this week, the Wall Street Journal said.
The investment by the PIF may be strategic for its interest in electric vehicles and batteries; Vale’s base metals business mines and processes nickel and other metals needed to build electric vehicle batteries, the WSJ notes.
Saudi Arabia is looking to invest up to 32 billion in the mining and minerals sector, according to reports. Some of the projects considered for investment include a $4bn steel plate factory and a $2bn EV battery metals plant. As part of the plan, the country intends to support the development of nine mining projects for midstream minerals and metals that aim to support the exportation of mineral products.
Saudi Arabia is also looking to develop its mining sector. Last September, Saudi Arabia’s Ministry of Industry and Mineral Resources announced that the UK-Saudi consortium of Moxico Resources and Ajlan & Bros Mining Company emerged as the winner of the electronic multi round auction for Khnaiguiyah exploration license, one of the most sought-after opportunities in the Kingdom as it opens up to foreign investment.
