Chile and Saudi Arabia Explore Joint Investments in Copper and Lithium Sectors

Currently, Saudi Arabia imports most of its copper to meet domestic demand, which stands at 365,000 tonnes annually. This figure is expected to more than double by 2035, emphasizing the importance of strategic partnerships with key producers such as Chile.

Chile and Saudi Arabia have entered preliminary discussions to explore potential joint investments in the copper sector, as announced by the chairman of Chilean state-owned company Codelco, Máximo Pacheco, last Friday. These negotiations could also extend to lithium, as Saudi Arabia aims to import this mineral from Chile for local processing.

Saudi Arabia's Interest in Chilean Lithium

The South American country, the world's second-largest producer of lithium after Australia and home to the largest known reserves, opened more than 20 lithium salt flats to private investment last year. Pacheco stated at the Future Minerals Forum in Saudi Arabia that they are "very open to considering joint investment opportunities."

Technology Transfer and Desalination

Discussions between Codelco and Saudi Arabia have also addressed the possibility of technology transfer, with a focus on Saudi expertise in water desalination. Additionally, the incorporation of advanced technologies such as artificial intelligence in Chilean mining operations is being evaluated.

Saudi Arabia's Focus on Mining and Electric Mobility

Saudi Arabia has outlined an ambitious plan to become a global hub for battery and electric vehicle manufacturing. As part of its broader strategy to diversify the economy beyond oil and gas, the kingdom is investing significantly in its mining and industrial sectors.

The Minister of Industry and Mineral Resources, Bandar bin Ibrahim Alkhorayef, has announced plans to import metals and manufacture batteries using both imported and locally sourced materials. "The beauty of the mining sector in Chile, unlike other countries, is its diversity. There are large, medium, and small companies, creating unique opportunities for collaboration," Alkhorayef stated in previous remarks.

Saudi Investments in International Mining

Saudi Arabia is seeking stakes in foreign mining operations through Manara Minerals Investment Co., a joint venture between the Public Investment Fund (PIF) and the Saudi Arabian Mining Company (Ma'aden).

Among Manara's most notable investments is the acquisition of a 10% stake in Vale Base Metals in 2023, a copper and nickel spin-off valued at $26 billion. Furthermore, the Saudi kingdom is in talks to secure a stake in Pakistan's $7 billion Reko Diq copper and gold mine.

Copper Demand in Saudi Arabia

Currently, Saudi Arabia imports most of its copper to meet domestic demand, which stands at 365,000 tonnes annually. This figure is expected to more than double by 2035, emphasizing the importance of strategic partnerships with key producers such as Chile.