Saudi Arabia plans minerals trading platform

Saudi Arabia is planning to launch a new commodity trading platform for minerals used in batteries such as graphite and rare earths, Reuters reported on Thursday.

Saudi Arabia has put mining as a key focus under its Vision 2030 economic transformation initiative.

The country’s untapped mineral resources are considered to be worth USD 1.33 trillion and include copper, lithium, phosphate and gold.

“To be a minerals hub you have to have it all and we are studying a future minerals commodity exchange for graphite, rare earths, lithium, cobalt and even nickel, as there is no efficient commodity exchange nor price-finding mechanism for some,” said Khalid bin Saleh Al-Mudaifer, vice-minister for mining affairs of Saudi Arabia’s Ministry of Industry and Mineral Resources.

Currently both graphite and rare earths have no trading platform but are essential for electric vehicles and renewable energy technologies.

Saudi Arabia’s decision to open a trading platform is not expected within the next six months.

In January 2023, Saudi Arabia’s Public Investment Fund and state-owned Saudi Arabian Mining Company or Ma’aden jointly launched Manara Minerals with the goal of investing in foreign mining assets with a priority on copper, nickel, iron ore and lithium.

In July 2023, the new company purchased a 10% stake in Brazilian mining entity Vale’s base minerals subsidiary in a deal that is expected to close in Q1 2024.