Aramco and Maaden Join Forces to Tap Saudi Arabia's $2.5 Trillion Mineral Wealth

Saudi Arabia's push to diversify its economy beyond oil has gained momentum with a new joint venture between Aramco and Maaden. The two companies will explore for copper, rare earths, and other critical minerals in a massive area of the country.

The partnership covers a vast 182,000 square kilometer zone within the Arabian Platform, which is roughly 10% of Saudi Arabia's land area. Aramco and Maaden will share the costs of exploration but have different stakes in the venture: Maaden will hold a 51% stake while Aramco holds 49%.

The companies plan to use advanced algorithms and AI to identify areas with the greatest mineral potential, potentially reducing the time and cost involved in moving from geological screening to drilling and discovery. Copper is expected to be the main target, as it's essential for electric vehicles, renewable energy systems, and energy storage.

Saudi Arabia has positioned mining as a key sector in its Vision 2030 economic diversification strategy. The kingdom estimates its mineral resources at over $2.5 trillion and wants to increase mining's contribution to GDP to 240 billion riyals by 2030.

The Aramco-Maaden venture reflects the global race to secure supplies of minerals needed for clean-energy technologies. Both companies are profitable in their core businesses, with Aramco reporting a second-quarter net profit of $32.7 billion and Maaden's second-quarter profit rising 13% to nearly $582 million.