Saudi to get USD 9 bn minerals venture: US-based investment platform Burkhan World Investments and Saudi-based Grand Mines Mining inked a MoU to launch a new USD 9 bn company for mining investment and operations in the Kingdom, according to a statement released on Tuesday. The new venture will cover the exploration, development, processing, and trade of lithium, cobalt, and rare earth minerals.

ALSO- Ma’aden + MP Materials to drive rare earth industrialization in the Kingdom: Saudi Arabian Mining (Ma’aden) signed a MoU with US-based MP Materials to explore the development of a fully integrated rare earth supply chain in the Kingdom, according to a press release. The potential collaboration spans mining, separation, refining, and magnet production.

BACKGROUND- Last month, Ma’aden was reportedly considering a rare earths partnership with one of four international firms, including Australia’s Lynas Rare Earths, Canada’s Neo Performance Materials, China’s Shenghe Resources, and US-based MP Materials.

Saudi’s mining ambitions span the supply chain…: The kingdom has been advancing minerals projects across the supply chain, including three sites planned for mining complexes in Madinah and the Eastern Province to mining complexes. Saudi has also been on a spree of awarding mining exploration licenses, with about 4.5k mining licenses issued in the last two years and more than 30 planned this year. The Kingdom is also eyeing a piece of the global trading in minerals as demand rises.

… and it’s making it attractive: The Kingdom launched a USD 182 mn incentive program in January and a SAR 685 mn incentive package last year as part of efforts to expand the sector, and further exploit its untapped mineral resources, which are now estimated to be worth as much as USD 2.5 tn — or 90% more than the last forecast in 2016.

REMEMBER- A fast and furious push: The country announced it plans on developing a USD 100 bn mineral investment vehicle, including USD 20 bn that is currently underway.”Oil is no longer an energy security challenge – it’s going to be gas, electricity, predominantly minerals,” Saudi Energy Minister Abdulaziz bin Salman said at the Future Minerals Forum in January — where the country inked 126 mining agreements and MoUs valued at SAR 107 bn (c. USD 28.5 bn). The country’s mining profits stood at SAR 1.5 bn in 2023.

MORE FROM TRUMP VISIT-

#1- USD 10 bn for modular nuclear energy reactors: UAE-based Industrial Holding Company and American energy equipment supplier Holtec International will cooperate to build a fleet of Holtec’s SMR-300 small modular reactors at its facility in Michigan, according to a White House statement. An initial USD 10 bn was committed, with an additional USD 20 bn to be added for fleet projects. The project aims to “revitalize American nuclear energy infrastructure,” the statement read.

#2- A gallium smelter: EGA will also collaborate with Tawazun Council and US defense conglomerate RTX on a USD 4 bn primary gallium smelter project in Oklahoma. Production will provide critical mineral supply chain support for semiconductors used for tech manufacturing security means.

#3- Acwa Power has signed USD 500 mn worth of agreements with US companies spanning solar, desalination, green hydrogen, and ammonia, according to a statement released on Wednesday. The agreements were signed on the sidelines of the Saudi-US Investment Forum in Riyadh during US President Trump’s visit earlier this week.

Here’s a rundown:

  • Green Hydrogen: Acwa is partnering with energy technology firm Baker Hughes to explore the potential production and testing of green hydrogen technologies, including electrolysis solutions and safety mechanisms for production;
  • Ammonia: The company is also partnering with EPC company KBR on large-scale ammonia projects but no further details were mentioned;
  • Lower-carbon desalination: Energy efficiency firm Energy Recovery and Acwa will explore deploying tech to reduce energy consumption and increase efficiency in its water desalination projects;
  • Solar: Acwa also said the solar agreements will target deploying tracker technologies for solar PV projects to reduce energy costs and increase capacity but did not name which companies would be involved.
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