Saudi Arabia has agreed to buy a stake in the base metals unit of Brazilian mining company Vale, the first major deal in the global mining industry.
The Saudi Public Investment Fund (PIF) and the Saudi Arabian Mining Company, known as Maaden, will acquire a 10 per cent stake in Vale's base metals unit, Vale announced yesterday. In addition, investment company Engine No. 1 will acquire a 3 per cent stake in the unit. The total amount to be paid under both agreements was reported to be 3.4 billion dollars.
In addition to the Vale deal, Maaden recently formed a joint venture with Ivanhoe Electric Inc. to develop mining projects in Saudi Arabia. The firm announced a partnership with Barrick Gold Corp. to explore and develop two new areas in the kingdom where they operate the Jabal Sayid copper mine.
Saudi Arabia has reportedly been on a global investment attack in recent years. PIF has taken stakes in video game makers and electric car manufacturers, but the Vale deal is said to be the first major investment in mining since it formed a joint venture called Manara with Maaden in January.
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