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Brazil and Saudi Arabia explore collaborative investment in sustainable mining

Saudi Arabia eyes strategic investment in Brazil's mining industry for sustainable development of critical minerals.

Brazil and Saudi Arabia explore collaborative investment in sustainable mining

In a recent meeting between Brazil's Mining and Energy Minister, Alexandre Silveira, and Saudi Arabia's Industry and Mining Minister, Bandar Alkhorayef, discussions centered around potential Saudi investment in Brazil's sustainable mining sector, with a focus on critical minerals.

The Ministry of Mines and Energy (MME) revealed that the officials delved into the prospects of establishing an investment fund specifically aimed at supporting Brazil's mining industry. While the interest of Saudi Arabia's Public Investment Fund (PIF) remains uncertain, the Kingdom expressed keen interest in contributing to the development of Brazil's mining sector.

Saudi Arabia's commitment to this collaboration was highlighted by the announcement of a joint venture between the state mining company Ma'aden and PIF. The venture aims to invest in crucial minerals such as nickel, lithium, copper, and iron ore, with the ultimate goal of bolstering a downstream supply chain and securing physical offtake of these critical minerals.

Brazil's energy landscape, with approximately 88% sourced from clean energy including wind, solar, and hydropower, provides a strong foundation for sustainable mining practices. The country also boasts extensive deposits of rare earths, lithium, and niobium among other critical minerals.

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