Saudi Arabia has sealed a major mining industry deal after a joint venture that includes the kingdom’s sovereign wealth fund agreed to buy a stake in the base metals unit of Brazil's largest mining company.
Manara Minerals Investment Company, a new joint venture between the kingdom’s Public Investment Fund and the Saudi Arabian Mining Company Ma’aden, will invest in Vale Base Metals Limited (VBM), according to Vale's press release Thursday.
Manara Minerals will acquire 10% of Vale's base metal unit. Per the statement, the total value of the acquisition, which in addition to Manara's 10% also included a 3% stake by US investment firm Engine No. 1, stands at $3.4 billion. The enterprise value of Vale’s energy transition metals business is $26 billion.
Robert Wilt, executive director of Manara Minerals and CEO of Ma’aden, celebrated the agreement with VBM as a historic first.
