Saudi sovereign wealth fund moves to separate Manara Minerals to sharpen focus on global critical minerals and technical capabilities
Saudi Arabia is advancing a plan to spin off Manara Minerals. The Public Investment Fund (PIF) wants to separate its mining arm to sharpen its strategic focus. Officials state this move will enhance the kingdom’s technical strength in global mineral markets.
Manara Minerals began in 2023 as a joint venture between PIF and Maaden. This planned separation marks a new phase for Riyadh. The kingdom aims to secure essential resources like copper and lithium. These minerals are critical for electric vehicles and renewable energy systems.
So far, Manara has completed one major deal. It purchased a 10% stake in Vale Base Metals for $2.5 billion. Minister Bandar Al-Khorayef believes the spin-off will transform the company. He wants Manara to evolve from a passive investment vehicle into an entity with deep technical mining skills.
This shift aligns with the Vision 2030 economic diversification plan. Crown Prince Mohammed bin Salman seeks to reduce oil dependence by tapping into mineral reserves. Experts estimate these reserves at $2.5 trillion. They include gold, phosphate, bauxite, and rare earth elements.
Industry insiders believe new investors could help Manara. Both domestic and international partners could provide valuable expertise and capital. While the plan is moving forward, officials have not yet set a final timetable for the spin-off.
Meanwhile, Maaden is pursuing advanced technologies. The company wants to extract lithium from seawater and explore for rare earth minerals. These efforts reaffirm Saudi Arabia’s ambition to lead global supply chains.
The kingdom’s mining initiative reflects a wider global trend. Countries and sovereign funds now scramble for strategic materials. These resources underpin the transition to clean energy and electric mobility.
