Saudi Arabia’s Manara Minerals Eyeing Chilean Lithium Investment
Sovereign Wealth Fund-Backed Company Explores Opportunities in World’s Largest Lithium Producer
During an official visit to Chile, Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, revealed that Manara Minerals Investment Co., supported by the Kingdom’s sovereign wealth fund, is considering investing in lithium production in Chile. The Kingdom is currently evaluating various investment options in the top lithium-producing country.
Alkhorayef highlighted Chile’s significance as the largest producer of battery metal, making it an attractive prospect for Manara. Saudi Arabia is strategically seeking access to lithium and other minerals to establish itself as a center for battery and electric vehicle manufacturing.
Established in 2023 by the Public Investment Fund and Saudi Arabian Mining Co., Manara Minerals is part of Saudi Arabia’s broader economic diversification strategy to leverage its mineral resources for growth.
Building Bridges for Sustainable Partnerships
Alkhorayef expressed optimism about the potential collaboration with Chile, noting the strong commitment from the Chilean government to facilitate investments. Securing a reliable supply of lithium is crucial for Saudi Arabia’s domestic battery and electric vehicle production ambitions.
During his visit, Alkhorayef met with Chilean officials to explore strategies for enhancing cooperation between the two countries in the industrial and mining sectors. He proposed the formation of a joint group to foster collaboration in the mining industry.
Strengthening Bilateral Trade Relations
Saudi Arabia and Chile maintain robust trade relations, with non-oil exports to Chile amounting to SR700 million ($186.59 million) in 2023. Import figures stood at SR500 million, underscoring the economic ties between the two nations.
Paving the Way for Mining Sector Growth
Alkhorayef’s visit aligns with Saudi Arabia’s overarching strategy to elevate the mining sector as a key driver of economic growth, leveraging its estimated $2.5 trillion in untapped mineral resources. Prior to visiting Chile, the minister explored advanced mineral extraction technologies at Vale’s Carajas mines in Brazil, signaling the Kingdom’s commitment to fostering international partnerships in the mining industry.
Meetings with key industry players, such as Vale Mining Co.’s CEO Eduardo Bartolomeo, also underscored Saudi Arabia’s openness to investment opportunities for Brazilian companies in the Kingdom and expansion plans for Brazilian investors.