Saudi Arabia has made the first big deal in a push to deploy its vast wealth into the global mining industry, agreeing to buy a stake in Vale SA’s base metals unit.
Saudi sovereign wealth vehicle, Public Investment Fund, and Saudi Arabian Mining Co., known as Maaden, will purchase a 10% stake in a company created to house Vale’s base metal assets, Vale saidThursday. Separately, investment firm Engine No. 1 will buy a 3% stake. The total amount to be paid under both agreements is $3.4 billion.
Saudi Arabia has been on a global investment spree in recent years as it seeks to parlay its oil wealth into other sectors. PIF has snapped up stakes in video game makers and electric carmakers, but the Vale deal is the first major investment in mining since it set up a joint venture with Maaden in January called Manara.
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