Saudi Public Investment Fund plans to spin off mining firm Manara

Saudi Arabia’s Public Investment Fund plans to spin off its mining investment firm Manara Minerals, the kingdom’s mining minister said, as it seeks to revive its pursuit of investments abroad.

Saudi Arabia, in common with other Middle Eastern economies, is working to secure critical minerals such as copper and lithium, essential for electric vehicles and renewable energy, as part of its efforts to reduce dependence on oil.

Manara, a joint venture between the Saudi Arabian Mining Company, also known as Maaden, and the $925 billion PIF, was established in 2023 to invest in critical minerals abroad.

But, although it has bid for assets across Africa and Asia, it has so far completed only one deal: a $2.5 billion 10% stake in Vale Base Metals, which was spun off from Brazilian iron ore giant Vale in 2024.

Industry and Mineral Resources Minister Bandar Al-Khorayef said spinning off Manara from the PIF would sharpen its focus.

“This will change the culture of the company from being only an investment vehicle to having more technical capability,” Al-Khorayef told Reuters in an interview on the sidelines of the Future Investment Forum event.

“PIF is a large investor, but they don’t have mining expertise.”

He did not give any timing on a spin-off, but said discussions over new shareholders in Manara were ongoing, adding that they could be Saudi or foreign investors.

In Saudi Arabia, the pursuit of international investments and the development of mining are part of Crown Prince Mohammed bin Salman’s broader plan to diversify the economy away from oil.

Riyadh estimates its untapped mineral resources, including phosphate, gold, bauxite and rare earth elements, at about $2.5 trillion.

Maaden is also exploring for rare earths and developing technology to extract lithium from seawater.

(By Clara Denina; Editing by Veronica Brown and Barbara Lewis)