Saudi Arabia has established a company to invest in global mining operations. After acquiring a 10% stake in Brazil's Vale Group in 2023, Manara Minerals, a Saudi firm, now wants to invest in the copper mines owned by Canada's First Quantum in Zambia.

On October 30, Saudi Arabia confirmed that it is in advanced discussions to acquire a stake in these copper mines. Robert Wilt, VP of Manara Minerals, stated that copper is an "absolute priority," especially given the ongoing energy transition.

According to Nornickel, the demand for copper in wind power generation is expected to increase significantly, from 300,000 to 400,000 metric tons per year in 2022-23 to between 1.1 million and 1.4 million metric tons by 2030 and 2035. In this context, Manara Minerals is negotiating to acquire a 15-20% stake in several Zambian copper and nickel mines, including Kansanshi, Sentinel, and Enterprise, which are projected to produce at least 375,000 tonnes of copper in 2024.

As reported by Reuters, the estimated value of this stake ranges from $1.5 billion to $2 billion, with a potential agreement expected by the end of the year. Beyond Zambia, Saudi Arabia's interest in copper may extend to the Democratic Republic of the Congo (DRC), Africa's largest copper producer. The DRC is seeking new investors for its vast copper reserves, currently dominated by Chinese companies. A memorandum of understanding on mining cooperation has already been signed between Saudi Arabia and the DRC.

Saudi Arabia is not the only one to show interest in African copper resources. Besides China which has heavily invested in the DRC and Zambia in recent years, the United Arab Emirates entered the Mopani mines in Zambia last year. There is also the American KoBold Metals which could invest up to $2.3 billion in Zambia's Mingomba deposit.

Emiliano Tossou