Zambia and Saudi Arabia Partner on Mining Investments

During an interview with Reuters, Minister of Mines and Minerals Development Paul Kabuswe revealed that Saudi Arabia’s Manara Minerals is exploring investment opportunities in Zambia’s critical mineral projects. This move aligns with Saudi Arabia’s broader strategy to diversify its economy and reduce its reliance on oil under Crown Prince Mohammed Bin Salman's initiative.

On 14 January, Kabuswe and His Excellency Mr Bandar bin Ibrahim Al- Khorayef, Minister of Industry and Mineral Resources of the Kingdom of Saudi Arabia, signed a Memorandum of Understanding (MoU) on Cooperation in Mineral Resources in the Mining Sector. The MoU seeks to foster collaboration between the two nations across various aspects of the mineral industry.

Saudi Arabia is among several Middle Eastern economies seeking critical mineral deals in Africa. Reuters reported in October 2024 that Manara Minerals and the kingdom’s $925 billion Public Investment Fund are nearing a deal to acquire a minority stake in the Zambian copper and nickel assets of Canada’s First Quantum Minerals. First Quantum has stated it is "assessing the potential benefits of a minority stake sale in Zambia." Kabuswe noted that while the Zambian government is aware of the discussions between Manara and First Quantum, it is not privy to the specific details of the negotiations.

Kabuswe also highlighted Zambia's push to secure larger stakes in mining projects, aiming for shareholdings as high as 30% in new ventures. Despite some mixed reactions from investors, Kabuswe emphasised that the move has not deterred investor interest. “We no longer want those agreements where we have 10% or 15%,” he stated. The government is also engaging with companies like Barrick Gold, Ivanhoe Mines, and Chinese investors regarding their plans for new projects in Zambia.