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Ma’aden + PIF JV takes 10% stake in Vale: Manara Minerals, a JV between Saudi Arabian Mining (Ma’aden) and the Public Investment Fund (PIF) set up for international mining investment, completed the acquisition of a minority stake in Brazilian miner Vale Base Metals (VBM). Manara is 51% owned by Ma’aden, and 49% owned by PIF. The transaction is worth an estimated USD 2.6 bn, based on a USD 26 bn enterprise value VBM had previously disclosed.
What’s in it for Manara: The acquisition “will play a key role” in Manara’s copper and nickel production expansion, it said in an earlier disclosure. The Ma’aden-PIF JV could deploy USD 15 bn in the coming years, sources said in January of last year.
REMEMBER- Copper, cobalt, nickel, and lithium — critical minerals for EV and battery storage production — are expected to see a massive jump in demand in the coming years as countries roll out their plans for energy transition.
This has been in the works: PIF has been reportedly in advanced talks with Vale over a minority stake acquisition through Manara since as far back as June of last year, which was contested by the likes of Japan’s Mitsui & Co and the Qatar Investment Authority. The agreement was finalized through a binding agreement the following month.
About Vale: VBM has “world-leading mining jurisdictions,” in places like Canada, Brazil and Indonesia. It is also Vale’s holding arm for energy transition metals, boasting supply chains for nickel, copper, and cobalt, which Manara will gain access to, according to a PIF statement. Vale also signed an agreement in January with The Royal Commission for Jubail and Yanbu to set up a green iron ore briquettes production plant in the Kingdom.
