Rio de Janeiro – Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al-Khorayef, met with Eduardo Bartolomeo, CEO of Brazilian mining giant Vale, to discuss promising investment opportunities in Saudi Arabia’s mining sector. The meeting, attended by Deputy Minister for Mining Affairs Khalid bin Saleh Al-Mudaifer, focused on expanding Brazilian investments in the Kingdom by leveraging the incentives and enablers provided by Saudi Arabia’s mining environment.
The discussions highlighted the strong mining ties between Saudi Arabia and Brazil, which recently saw Saudi Arabia acquiring a 10% stake in Vale’s base metals division through Manara Minerals, a joint venture between the Public Investment Fund (PIF) and Ma’aden.
The meeting also underscored the importance of using modern technologies in mining projects to enhance production efficiency and promote environmental sustainability, aiming for carbon neutrality in the coming decades.
Bartolomeo praised Saudi Arabia’s economic development and the Kingdom’s ambitious projects, noting the significant support Vale received when investing in the Kingdom, particularly in establishing the iron pelletizing plant in Ras Al-Khair, Eastern Province. He invited the Saudi delegation to visit Vale’s mines in Carajás to learn from their mining practices.
Brazil’s vast mineral wealth and extensive experience in mineral exploration and exploitation make it a key partner for Saudi Arabia in the mining sector. The two countries have maintained robust bilateral relations for over 50 years, primarily based on significant cooperation in energy and minerals.
Saudi Arabia is rapidly advancing its mining sector to explore and exploit its vast mineral resources, valued at approximately SAR 9.4 trillion. The Kingdom aims to make mining the third pillar of its industrial base, viewing international cooperation and partnerships as essential for sector development and addressing supply chain challenges.
To attract investors, Saudi Arabia has implemented several measures to improve the investment environment, including amending the mining investment law and offering various incentives such as 75% co-financing for capital expenditures, a five-year tax exemption, and 100% foreign ownership. In April 2024, the Ministry launched the Exploration Empowerment Program (EEP), allocating $182 million to reduce exploration risks and accelerate innovative exploration.
The Kingdom provides continuously updated geological data through the General Geological Survey Program, available on a digital platform, to help investors make informed decisions. Recently, Saudi Arabia announced the establishment of the National Minerals Program, aimed at enhancing the quality and efficiency of mineral supply chains and ensuring a steady supply for local industries and major projects. The Kingdom targets SAR 120 billion investments in basic and strategic metal industries.
In another meeting, Al-Khorayef met with Magda Chambriard, CEO of Petrobras, to discuss cooperation opportunities in the manufacturing and petrochemical sectors.
These meetings are part of Al-Khorayef’s current visit to Brazil, where he leads a delegation from the Ministry of Industry and Mineral Resources on an economic tour that includes Brazil and Chile from July 22 to 30. The tour aims to strengthen bilateral ties, attract investments to Saudi Arabia, and explore mutual investment opportunities in the industrial and mining sectors.
