Saudi Arabia also wants to be a "resource dealer"? It is reported that the state-owned enterprise Manara is planning to enter the metal trading business.

As Saudi Arabia continues to expand its role in the global supply chain, the country’s state-owned metals and mining investment platform is in talks with several international commodities trading giants, planning to enter the metal trading business.

Sources familiar with the matter revealed that Manara Minerals Investment Company of Saudi Arabia has engaged in discussions with multiple traders, including Glencore and Mercuria Energy Group, to explore the possibility of establishing partnerships.

Founded in 2023, Manara is a joint venture established by Saudi Arabian Mining Company (Maaden) and the Public Investment Fund (PIF), aiming to invest in global mining assets and support the development of resilient global supply chains.

Against the backdrop of multiple commodity prices approaching record highs and the political focus on critical mineral supply security, Middle Eastern investment institutions are accelerating their布局 in the metal trading sector to enhance their exposure and influence.

Last year, the metal trading sector became one of the most profitable business segments for many trading giants. The surge in metal prices combined with the fragmentation of copper supply chains created “once-in-decades” trading opportunities.

This has also driven capital to flow rapidly into the field, with Saudi Aramco and U.S. hedge fund giant Citadel launching new trading businesses.

In the “2030 Vision,” Saudi Crown Prince announced that the government aims to develop the mining industry into the third-largest economic pillar after oil and chemicals, to reduce dependence on oil.

Manara’s responsibility is to acquire overseas mine assets and transport raw materials back to Saudi Arabia for processing.

Currently, the company is evaluating various cooperation models, including establishing a formal trading joint venture or signing agency agreements to assist with logistics and other aspects; project-by-project cooperation is also considered.

Manara previously acquired a 10% stake in the base metals business of Brazilian mining giant Vale for $2.6 billion, but subsequent efforts to find new high-quality acquisition opportunities have faced difficulties due to high valuations.

(Source: Cailian Press)