Saudi Arabia has reiterated its strong interest in enhancing its presence in the metals and mining sector, aiming to turn it into a third pillar of the kingdom’s economy. A key part of this strategy includes acquiring control over Bahrain’s aluminium smelter and accumulating assets in global companies.
Previously, Saudi Arabia expressed a similar interest asserting its aim to become a key global hub for metal production. In line with this future goal, the state-owned Saudi Arabian Mining Co., known as Ma’aden, has recently signed a series of deals this week, including buying a 20.62 per cent stake in Aluminium Bahrain (Alba) from Saudi Basic Industries Corp. (SABIC) for over $1 billion.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, has put the aluminium industry as the centre stage of his Vision 2030, which encompasses the desire to create a thriving economy, vibrant society, and ambitious nation. In this context, Ma’aden has been assigned a crucial role, tasked to expand its domestic production capacity.
Ma’aden chief executive officer Bob Wilt said in an interview in Riyadh, “I’m very bullish on aluminium. The energy transition doesn’t happen without aluminium, so if we want to be a critical minerals and processing hub, we’ve got to control the feedstock.”
To deepen its presence in the Bahrain market, Ma’aden is also set to be issued new shares in Alba in exchange for its Saudi aluminium assets under a proposed merger agreement with the Bahrain firm.
“When we have the combination of us and Alba, and our growth plans, we’re easily in the top five” for global aluminium production, said Wilt.
As part of Saudi’s metals and mining drive, Ma’aden has also partnered with the kingdom’s most powerful sovereign wealth fund to form an investment vehicle, Manara Minerals Investment Company (Manara), which will buy overseas assets to establish Saudi Arabia’s leadership in the global aluminium industry.
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