Copper Investment Opportunities Abound as Chile’s Codelco Eyes Saudi Arabia
Chile’s state-owned copper giant, Codelco, is in talks with Saudi Arabia to explore potential joint investments in the copper sector. This move comes as Codelco aims to boost production from 25-year lows, overcoming challenges such as declining ore grades and construction mishaps.
Mutual Interest in Adding Value
Codelco chair Maximo Pacheco emphasized the mutual interest between Codelco and Saudi Arabia in adding value through joint ventures (JVs). Pacheco stated that the company’s production for 2025 is expected to increase by approximately 70,000 tonnes, reaching around 1.4 million tonnes (mt).
Joint Investment Opportunities on the Table
“We would be very open to considering joint investment opportunities,” Pacheco said after attending the Future Minerals Forum in Saudi Arabia. He mentioned his meetings with Saudi mining minister Bandar al-Khorayaf and representatives from Manara Minerals, a JV between Saudi Arabian Mining Company and the kingdom’s $925bn Public Investment Fund.
Technology Transfers and Lithium Projects
Pacheco also discussed technology transfers, highlighting Saudi Arabia’s expertise in desalination and the potential introduction of technologies such as AI in mining. Meanwhile, Codelco is seeking partners for a lithium project in the Maricunga salt flat, although Saudi companies are not on the shortlist, with a board vote on the project expected in March.
Saudi Arabia’s Critical Minerals Ambition
Saudi Arabia is actively seeking critical minerals such as copper and lithium to develop its battery and electric vehicle (EV) manufacturing sector, aligning with Crown Prince Mohammed bin Salman’s vision to diversify the economy away from oil. The country is forming partnerships with foreign miners, including Canada’s Barrick Gold, Brazil’s Vale, and India’s Vedanta Resources, to establish a metals and mining hub.
Regional Collaboration
Manara Minerals, state miner Maaden, and Saudi Arabia’s Ministry of Industry and Mineral Resources have engaged in talks with Zambia, Africa’s second-largest copper producer, for closer collaboration. An announcement from these discussions is anticipated in the coming months.
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