Fortune Minerals Ltd T.FT

Gulf Nations wanting to diversify

[Jim1712]

There's a new force sweeping through the global mining sector — and it has huge firepower

The Financial Post - April 1, 2024

 

 

The Mopani deal finalized at the end of March marks a new force sweeping through the global mining sector. Gulf nations, hungry to diversify their economies beyond fossil fuels, are redirecting petrodollars to secure copper, nickel and other minerals used in power transmission lines, electric cars and renewable power…Beyond the UAE, chief among them is Saudi Arabia which wants mining to contribute US$75 billion to its economy by 2035, up from US$17 billion. Oman has started construction of what could be the world’s largest green steel plant that plans to use iron ore from Cameroon, while the Qatar Investment Authority, the gas-rich state’s sovereign wealth fund, is now Glencore’s second-biggest shareholder…For resource-rich nations in Africa, Asia and Latin America, the entrance of these middle powers into the critical mineral battleground is a welcome alternative to decades of exploitative arrangements underpinned by either western colonialism or Chinese debt…These nations believe that selling to Gulf states can help sidestep tension between the United States and China over their copper, iron ore and lithium — resources the two powers need to electrify their economies…But Gulf investment also comes with risk, industry insiders warn. Sovereign wealth can bring opacity and complexity when what mining projects and local communities desperately need is more accountability and transparency…Despite this, Washington has welcomed the Gulf’s expanding role in mining for helping to break Beijing’s monopoly over processing critical minerals. The U.S. has been actively brokering Saudi, Emirati and Qatari investment in riskier jurisdictions, such as the Democratic Republic of Congo (DRC), where western companies struggle to enter, in order to keep China out, according to executives from mining companies and trading houses, as well as a senior U.S. government official…With Gulf nations raking in US$400 billion of fossil fuel revenues annually, but facing a future where hydrocarbons will be phased out, expanding into mining is a logical step. At the same time, Saudi Arabia and the UAE are investing heavily in new technologies and will need access to their own steady supply of raw materials…Under Crown Prince Mohammed bin Salman’s “Vision 2030” to modernize Saudi Arabia’s economy, mining and minerals processing are earmarked to become the third industrial “pillar” next to oil and gas and petrochemicals…Saudi Arabia is gearing up to exploit what it estimates are US$2.5 trillion of domestic mineral assets with the help of the world’s largest oil exporter, Saudi Arabian Oil Co. (Saudi Aramco), alongside state mining group Saudi Arabian Mining Co. SJSC (Ma’aden). But reaping the fruits of exploration will take years, if not more than a decade. Hurdles include a lack of water in the mainly desert country, few trained mining engineers and scant high-quality mineral deposits…To address that, the kingdom aims to secure copper, iron ore, lithium and nickel from overseas for processing domestically through Manara Minerals Investment Co., a joint venture established last year between Ma’aden and the Public Investment Fund. In return for minority investments into established operations run by blue-chip companies such as BHP Group Ltd. and Rio Tinto Ltd., it aims to receive metals supply — a model Japanese trading houses have successfully deployed for decades…One of the biggest questions hanging over the extent of Gulf involvement in mining is the speed at which state agencies can move. Grand political deals and regional rivalry will accelerate activity, but advisers say that the Gulf nations — particularly Saudi Arabia — are hamstrung by bureaucratic wrangling over the strategy, who is in control and which assets to buy.

[Yellowknifer69]

As the saying goes in golf: 'Putt for dough, drive for show' At some point, an investor has to put up significant backing for Rio/Fortune. Question I have, is whether it will happen in our lifetime? We wait, Yellowknifer

[red]

The beauty of the saudis is once they own they can control and if they want they can participate to slow down electrification as they may want or need lol .... a bit conspiratorial but it's the way of the world these days. 

[Freedom2022]

The saudis are All in on Solar , they want the best of both , forward thinkers $$ , But i thought foreign investment was a no no, N A needs all the supply FT has ,, We need  USA/Can investing,, cheers!  saudis are our "Frienemies"   its like knowing a Hells Agnel, Arms length,, lol   my hockey  teams golie was one lol   

[Jim1712]

Well they do own  the LIV golf tour !   Like them or not they have the resources to move forward as they wish.  Jim 

[ztransforms173]

- they also own PREMIUM FOOTBALL CLUBS and they SPEND A FORTUNE BUYING WORLD CLASS SOCCER PLAYERS * Manchester City Football Club (UAE) * Newcastle United Football Club (SA) * Paris Saint-Germain Football Club (Qatar) z173