A new JV for mining exploration in KSA could be in the works: Tadawul-listed miner Almasane Alkobra (Amak) signed a letter of intent (LOI) to set up a joint venture with London-listed Power Metal Resources for minerals expiration on an Amak mining site in the Kingdom, according to a disclosure to Tadawul and a statement (here and here). The proposed JV will be 51% owned by Amak and 49% by Power Metal Resources.

What we know: The JV will focus on nickel ore and related minerals exploration for Amak-owned Qatan exploration license, both companies said. The exploration license spans 72.247 km2 in the south of Saudi Arabia. It is located around 70km east of Amak's mines. It will see Power Metal spend USD 3 mn to take an interest in Qatan under the LOI which will be valid for three months.

About Power Metal Resources: Power Metal Resources has multiple active exploration projects in Saudi Arabia, Australia, Botswana, Canada, Tanzania and the US, the press release added. The company’s business model sees it developing projects either through joint ventures or internally before selling them or listing them later on a recognized stock exchange.

KSA’s mining efforts have been gaining momentum: Mining giant Ma'aden recently said it wants to grow 10x by 2040 to become one of the world’s largest mining companies. The state-owned mining company’s officials pointed to an inorganic push to grow Saudi’s mining champion, referencing its investment in Vale Base Metals — through its Manara Minerals JV with the Public Investment Fund — to hint at future investments overseas which are “very far along in diligence” and set to be announced by the end of this year.

REFRESHER- Saudi’s Industry and Mineral Resources ministry launched a fresh incentives package worth SAR 685 mn earlier this year as part of efforts to expand the sector and tap reserves of gold, phosphate and others. The nation’s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016, officials said in January.

With more planned overseas: PIF-backed Manara Minerals has reportedly submitted an offer last month to acquire a 15% stake in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan, according to media reports. The offer includes both a cash purchase of shares and a grant for infrastructure development around the mining area. Information about the grant size wasn’t disclosed. The feasibility study would be completed by December of this year, while commercial production is slated for 2028.

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