Aramco, Maaden plan mining JV across area nearly 10% of Saudi Arabia

Dubai-based oil giant Aramco and Saudi Arabia's Mineral Resources Development Company, Maaden, have officially signed a shareholders' agreement to establish a joint venture for mineral exploration and hard-rock mining in a region covering approximately 182,000 square kilometres of the Kingdom. This area, equivalent to nearly 10% of Saudi Arabia's total land mass, will primarily focus on copper, alongside zinc, lead, and rare earth elements, which are critical components of electric vehicles, power networks, energy storage, and renewable energy systems.

The proposed venture will be led by Maaden, which will hold a 51% stake, with Aramco contributing the remaining 49%, subject to corporate, regulatory, and antitrust approvals. Both companies plan to leverage their respective strengths, with Aramco bringing decades of geological and geophysical data, advanced computing tools, and artificial intelligence capabilities, while Maaden contributes its extensive experience in mining and mineral exploration.

Aramco's Vice President of Transition Minerals, Saleh M. Al Saleh, emphasized the company's extensive expertise in the field, noting that the joint venture will delve into a new exploration zone within the Arabian Platform, known as Zone-4 or the Transition Zone. This 100-kilometre-wide area runs parallel to the Arabian Shield and has been identified as a promising new region for mineral discovery.

The primary target of the venture is copper, which is projected to command a significant portion of the $1.2 trillion global metals market, currently valued at around $250 billion and expected to surpass $400 billion by 2035. Additionally, the companies plan to explore for zinc, lead, and rare earth elements during the venture's operations.

To expedite the exploration process, Aramco and Maeden intend to utilize computational algorithms, artificial intelligence, and high-performance computing tools to identify regions with the highest potential for mineral deposits. This innovative approach aims to streamline the transition from regional screening to the precise definition of exploration targets and the eventual discovery of valuable mineral resources.