Saudi Arabia’s Maaden seeks $1bn private sector investment

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Saudi Arabian Mining Company (Maaden) is offering upwards of 52 investment opportunities worth SAR4 billion ($1 billion) to boost private sector participation, a senior executive has said.

Investments worth SAR1.3 billion are already in the implementation phase, Abdullah Al Osaimi, senior vice president, procurement and business support, told CNBC Arabia.

Maaden, Saudi Arabia’s largest miner, has significantly increased local content in its procurement processes. Currently, 57.2 percent of its procurements involve local suppliers, compared to 51 percent last year.

The company aims to increase the percentage to ensure the long-term competitiveness of its operation and the mining sector, he said.

The mining major aims to expand its operations tenfold compared to 2020, underpinned by a 10-year investment strategy involving projects worth billions of riyals, Al Osaimi said.

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In August, Maaden reported a three-fold surge in net profits, supported by higher commodity prices and lower raw material costs.

The second-quarter 2024 earnings rose to SAR1.02 billion ($260 million) from SAR351 million in the year-earlier period.

In May Manara Minerals, a joint venture between Maaden and Saudi Arabia’s Public Investment Fund, completed a $2.5 billion deal to acquire a stake in a subsidiary of Brazilian giant Vale, a multinational company involved in metals and mining.