Saudi Arabian Mining Company (Ma’aden) has joined forces with US-based mineral exploration company Ivanhoe Electric to form a 50-50 joint venture (JV) to explore copper, gold, nickel, and silver in Saudi Arabia.
The two parties have executed an agreement, which is anticipated to be finalised by the end of Q1 2023.
As part of the agreement, Ma’aden will invest $126.4m in Ivanhoe Electric to acquire a 9.9% stake in the latter.
The new JV will be established for an initial term of five years and can be extended up to 10 years upon mutual agreement.
The Saudi Arabian mining company stated that it will make about 48,500 km2 of land available under an exploration license within the country for exploration by the JV.
Ivanhoe Electric is anticipated to invest $66m in the JV, of which up to $13m will be spent to buy three new generation Typhoon machines for the JV.
Ma’aden CEO Robert Wilt said: “Ma’aden’s strategic investment in Ivanhoe Electric is a critically important moment in our journey to becoming a leading supplier of strategic minerals, which will fuel global economic growth over the coming decade.
“Though our partnership with Ivanhoe Electric we are advancing our capability to unlock the potential of our exploration portfolio to secure supply of strategic minerals and strengthening our international presence.”
Separately, Ma’aden has signed new JV agreements with Barrick Gold for two prospective exploration projects in Saudi Arabia that include the Jabal Sayid South and Umm Ad Damar licence areas.
With the new prospective JVs, Barrick Gold is expected to expand its copper base in Saudi Arabia.
