Manara Minerals, a joint venture between Saudi Arabian Mining Company (Ma'aden) and the Public Investment Fund (PIF), is positioning itself as a pivotal player in the global minerals market. Saudi Arabia, driven by its Vision 2030 program, aims to shift from oil dependency to becoming a global leader in industries such as mining and renewable energy. Copper, an essential component in green technologies, has become a target for Manara as the global demand for the metal intensifies.
The copper mine in question is part of Zambia's rich Copperbelt region, one of the world’s most prolific copper-producing areas. Zambia, along with its neighboring Democratic Republic of the Congo (DRC), holds significant copper reserves that have attracted global interest. Saudi Arabia's ambitions in the sector reflect a broader trend of Middle Eastern countries looking towards Africa for resource investments.
First Quantum Minerals, the Canadian company managing the Zambian mine, has been seeking to sell a portion of its stake in response to escalating operational costs and political pressures. Zambia has seen a resurgence of foreign interest following changes in government policies aimed at making its mining sector more attractive. The sale of this stake offers Manara a strategic entry point into the lucrative copper market, a resource critical for global industries such as electric vehicle production and renewable energy infrastructure.
Saudi Arabia’s entry into Zambia’s copper industry comes as part of a wider regional push to secure essential minerals. With its recent acquisition of a stake in Vale SA’s base metals unit, Manara has signaled its intent to expand its global footprint in critical mineral resources. Copper's role in the energy transition, particularly in electric vehicles and clean energy technologies, makes it a highly sought-after commodity. Saudi Arabia’s potential stake in Zambia’s copper industry would bolster its efforts to diversify its economy away from oil.
Rio Tinto, one of the world’s largest mining firms, has also been linked with First Quantum’s stake sale, though the company has historically shown reluctance to operate in central Africa. While Rio Tinto favors building new mines rather than acquiring stakes in existing ones, it remains a potential contender. However, Saudi Arabia’s strong financial backing and growing interest in Africa’s resource wealth could give Manara the upper hand in securing the deal.