FINANCE •
SAUDI ARABIA INVESTING IN AFRICAN MINING
By Dr Nicolaas C Steenkamp
The Kingdom of Saudi Arabia has not only increased investment in their own mining sector , but has expanded internationally , with more project involvement in Africa .
In recent years the Kingdom of Saudi Arabia has shifted their focus away from a dependency on oil towards development of hard rock mineral mining and attracting foreign investments . The Kingdom has also opened the country to external companies to undertake mineral prospecting and apply for mining rights . However , Ma ’ aden still remains the biggest mining company in the Kingdom of Saudi Arabia , controlling the largest and richest domestic deposits .
The Kingdom of Saudi Arabia has also looked internationally to secure mineral resources and has increased its involvement and invested in a number of mining projects in Africa .
In Guinea , the KSA has shown interest in the Simandou bauxite mine . Saudi Arabia ' s Public Investment Fund ( PIF ) is currently in talks with Aluminum of Dubai ( Dubal ) to acquire a stake in the giant Simandou bauxite mine in the country . The mine is estimated to hold over 7 billion tonnes of bauxite , making it one of the largest deposits in the world .
In terms of other fossil fuel energy security , the KSA has turned to South Africa . The Mmamabula Energy coal mine and Saudi Arabia ' s mining giant Ma ' aden signed a joint venture agreement with South Africa ' s Optimum Coal Mine to develop the Mmamabula Energy coal mine . The mine is expected to produce 18 million tonnes of coal per year once operational .
In order to secure supply of critical minerals , Zambia ’ s Kalumbila copper mine was identified to be of interest , where Saudi Arabia ' s PIF is considering investing in the Kalumbila copper mine , which is owned by Barrick Gold . The mine is one of the largest copper mines in Africa and is expected to produce 400 000 tonnes of copper per year .
Tanzania was also visited where nickel projects by Ma ' aden is now exploring for nickel – seen as a key metal for the electric vehicle industry . The Kingdom is aiming to become a processing hub for battery minerals .
Saudi Arabia has also pledged to invest USD10-billion in African mining projects over the next five years . This investment is part of the Kingdom ' s Vision 2030 economic diversification plan . These are just a few examples of Saudi Arabia ' s involvement in African mining .
Saudi Arabia has also pledged to invest USD10-billion in African mining projects over the next five years .
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