From July 22 to 30, the Ministry's delegation will visit some of the main cities in Brazil, such as São Paulo, Brasilia and Rio de Janeiro, as well as Santiago, Chile. Lithium is one of its strategic interests to ensure the production of electric vehicles.
The kingdom of Saudi Arabia embarks on an economic mission, with the visit to Brazil and Chile of the Minister of Industry and Mineral Resources, Bandar Ibrahim Alkhorayef, and the Deputy Minister of Mining Affairs, Khalid Saleh Al-Mudaifer.
This agenda aims to strengthen bilateral ties, attract investments to Saudi Arabia and seek mutually beneficial investment opportunities in the mining and industrial sectors.
From July 22 to 30, the Ministry's delegation will visit some of the main cities in Brazil, such as São Paulo, Brasilia and Rio de Janeiro, as well as Santiago, Chile. The visit is in line with the goals of Saudi Arabia's Vision 2030 to diversify the economy and transform the Kingdom into an industrial and economic powerhouse.
According to a press release, the delegation will participate in high-level strategic meetings with senior officials from various ministries of Brazil and Chile.
Saudi authorities will also meet with representatives of world-leading companies in the mining, food processing, aviation and other strategic industrial sectors.
Key meetings in Brazil will include the Brazilian Mining Association (IBRAM), Vale, Minerva Foods, JBF and BRF SA (one of the world's largest producers of fresh and frozen protein-based foods), among other important commercial and industrial entities .
In Chile, Alkhorayef will meet with his counterpart, the Minister of Mining, Aurora Williams, as well as important leaders of the Sociedad de Fomento Fabril (SOFOFA), mining giants such as Codelco and Antofagasta, as well as other companies.
In May of this year, Saudi Arabia finalized the purchase of the Petrobras service stations operated in Chile from esmax.
INTEREST IN CRITICAL MINERALS
Brazil and Chile are known for their vast mineral resources.
In the case of Brazil and Saudi Arabia they share a long bilateral relationship of more than 50 years. Its links are mainly based on energy, mineral, agricultural and fertilizer products. Brazil's diversified economy, with strong sectors in mining, agriculture, manufacturing and services, presents numerous opportunities to strengthen trade ties. Saudi Arabia already has several active portfolios of direct international investments in Brazil, including a recent 10% stake in Vale's base metals business, secured by Manara Minerals, a joint venture between the Public Investment Fund (PIF) and Ma 'aden, the largest mining company in Saudi Arabia.
In addition, the Saudi Agricultural and Livestock Investment Co. (SALIC) has acquired 180 million shares of BRF, a world leader in the poultry sector. This acquisition represents 10.7% of BRF's outstanding shares, valued at SAR 1.27 billion (local currency of Saudi Arabia).
Furthermore, Chile's global position as the world's second largest producer of lithium, which is a key mineral used in the manufacturing of electric vehicles (EVs), is in line with Saudi Arabia's drive to expand EV production.
This visit represents an opportunity for Chile and Saudi Arabia to exchange and share knowledge and technologies in this field, as well as in the areas of solar and wind energy.
Along the same lines, in June 2024, the CEO of Almar Water Solutions, which is part of the Saudi Abdul Latif Jameel group, Carlos Cosín, announced that the company hopes to establish a partnership with the Chilean state mining giant Codelco in its project « Maricunga” to produce lithium.
Cosín added, according to Reuters , that the company, based in Spain, focuses on water treatment solutions to produce renewable energy and wants to take advantage of its technologies in the extraction of lithium used in the manufacture of batteries, a process that requires large quantities. of water.
Last April, the English news outlet highlighted that Saudi Arabia "is committed to sourcing lithium from abroad while seeking to produce batteries for electric vehicles and invest in the electric vehicle sector," highlighting Minister Bandar Alkhorayef as a source.
Saudi Arabia, whose economy has for decades depended on oil, has spent billions trying to become a hub for electric vehicle manufacturing as part of de facto ruler Crown Prince Mohammed Bin Salman's attempts to diversify the economy.
SAUDI ARABIA GOES INTO THE WORLD
Saudi Arabia's rich geological endowment is a major attraction for investors, especially in the mining sector. The Kingdom offers 80 years of accessible geological data to facilitate investment decisions. Recent mapping of the Arab Shield has increased the estimated value of Saudi Arabia's mineral reserves from $1.3 trillion to $2.5 trillion.
Various initiatives have been launched to attract investors. One notable effort is the 2019 reformulation of the Mining Investment Law, which was developed through extensive global benchmarking.
This reform has placed the Kingdom on the world map, side by side with global mining leaders, earning it the reputation of being an exceptional mining jurisdiction, as reinforced by the Mining Journal World Risk Report 2023. The report highlighted Saudi Arabia as an outstanding mining jurisdiction, with the best regional and global results.
The Kingdom's scores increased markedly in terms of risk reduction in mining investments from 2018 to 2023, and the country became one of the 10 nations with the lowest legal and financial risks, which measure the risk of an investor losing the economic benefit of a mineral discovery, corporate tax and GDP growth.
The report also ranked Saudi Arabia as the second highest jurisdiction globally on the Permit Index, indicating an efficient licensing process.
The amended law introduced numerous competitive incentives in the mining and minerals sector, such as co-financing of 75% of capital investments, exemption from royalty payments for five years, 30% discounts for local downstream processing of up to 90%, a corporate tax rate of 20% and 100% direct participation of foreign companies.
In April 2024, the Ministry introduced the Exploration Facilitation Program (EEP), with an allocation of $182 million to reduce exploration investments, accelerate exploration of new deposits, identify new potential mineral, expand local talent and advance key objectives within Saudi Arabia's mining and minerals industry.
Additionally, the country's young demographic offers significant growth potential in emerging sectors. With two-thirds of the population under the age of 35, Saudi Arabia has a vibrant workforce, supported by significant government investment in education. Combined with a strategic location, solid infrastructure, rich mineral resources and attractive investment incentives, Saudi Arabia is a top investment destination for Brazil and Chile.
