Saudi Arabia is close to securing a stake in Zambia’s copper mining industry as it aims to diversify beyond oil dependence. Ma’aden, Saudi Arabia’s state mining company, alongside its joint venture with the $925 billion Public Investment Fund (PIF), Manara Minerals, is negotiating for a stake in Zambian assets owned by First Quantum Minerals. The potential deal, which could involve a 15-20% stake valued at $1.5 billion to $2 billion, is expected to conclude by the year’s end.
Robert Wilt, CEO of Ma’aden, confirmed the advanced talks during the Future Investment Forum in Riyadh, underscoring Saudi Arabia’s focus on securing copper—a critical metal for infrastructure, energy, and the ongoing global energy transition. Zambia’s copper belt offers both proximity and high yield, making it a strategic source for Saudi Arabia’s raw material needs as it expands its reach into essential industries. Copper’s increasing demand for use in electric vehicles, power grids, and renewable technologies highlights its role in Saudi Arabia’s Vision 2030, the kingdom’s roadmap for economic diversification and sustainability.
For Zambia, a Saudi investment could boost the mining sector, which contributes over 70% of the nation’s export earnings, and provide much-needed capital and expertise. Expanded copper production could fuel Zambia’s economy, creating jobs and fortifying the national revenue base. Additionally, an investment from Saudi Arabia may broaden bilateral economic ties, potentially attracting more investments in infrastructure and regional development.
However, foreign investment in Africa’s resource industries is not without challenges. Past experiences have shown that local economies may see limited benefits if the capital flows are not managed equitably. Without effective regulation, Zambia’s reliance on copper might expose it to global price shifts, while excess foreign capital could impact currency stability. Additionally, ensuring that Zambian communities directly benefit from mining profits and infrastructural improvements will be crucial in creating a balanced and sustainable economic impact.
For Saudi Arabia, this Zambian investment would be another step in securing essential resources for the kingdom’s industrial future. Ma’aden’s recent acquisition of a 10% stake in Vale Base Metals’ copper and nickel division reflects its expanding ambitions in global mining. By embedding itself in copper production, Saudi Arabia strengthens its positioning in key material markets necessary for renewable energy and technological development. Copper, along with aluminum and nickel, is pivotal for the downstream industries critical to the kingdom’s future beyond oil.
This partnership may also strengthen Saudi-Africa relations, as the Gulf kingdom increasingly looks to Africa for resources, food security, and strategic alliances. Through this venture, Saudi Arabia could expand its investments across Africa’s mineral-rich regions, supporting Vision 2030’s focus on diversified trade and resource security. Zambia, in turn, could gain from enhanced diplomatic and economic exchanges that extend beyond mining, potentially benefiting other sectors like agriculture and technology.
Yet, the environmental and social impacts of mining expansion in Zambia remain concerns for both sides. Copper mining can strain water resources, degrade local ecosystems, and affect surrounding communities. Zambia’s government should enforce stringent environmental standards, and Saudi Arabia should support these initiatives, ensuring sustainable mining practices. Transparent policies and shared development goals could protect Zambia’s environment and promote equitable growth in affected areas.
To maximize the economic gains, Zambia could reinvest mining revenues in community infrastructure, expanding schools, healthcare, and local businesses that strengthen the economy. Negotiations could also stipulate some local processing of copper, adding value domestically and generating more employment. At the same time, Zambia could look to diversify its economy beyond copper, encouraging investments in agriculture, tourism, and manufacturing to guard against the volatility of global commodity markets.
For Saudi Arabia, diversifying its international mining assets is key to resilience in a post-oil world. A stake in Zambia’s copper industry positions Saudi Arabia within a critical sector, securing resources essential for its industrial ambitions and future technologies. As global economies shift towards sustainability, securing access to metals like copper is a crucial part of Saudi Arabia’s strategy to lead in both mining and renewable energy.
These developments are most interesting but it seems unlikely that the Saudi Arabian government have any respect for the laws or interests of local people. In the case of water – as we know, liberating aquifers during mining increases the flow of water to supply the local community. But none of this will make any positive difference without investment in water treatment and distribution.
When Anglo and Roan was running the mines they invested in accomodation and water provision. My dad grew up in Mufulira, a big Mining town and they never paid anything for fully treated water because it was sourced from the mines
When mining started in Mufulira, the place was bush Savannah. If houses were to be built, clean and treated water to be supplied, roads to be built etc, the mining company had to do it or there was nobody to do it.
@gunner
The entire copperbelt was constructed like that. I have seen similar contracts in Katanga although weaker. Geccamines construct roads to and from mining centre’s.
That was how the then Northern Rhodesia mining companies were contractually engaged with government. Dont forget government only looked after its colonizer citizens.
The mining company didn’t have to do it. Its objective was copper and you can see it in their contract with govt. The miner was to leave to the company, house and all services once he quit.
A people’s(i. e. a socialist) govt would have decided to use them differently: provide family homes and post employment health services. KK did try to do it with stuff like site and service but we removed him and threw him out with the bath water.
As my Dad said: “A hill full of copper without capital (investment) is just another hill more”
In Zambia we don’t have that capital, so let’s not follow the communists that hate foreign investment
Saudi Arabia only has interest in developing Saudi Arabia….and Zambians sleep 24/7 just inviting every jim and Jack to come and mine on our behalf and when we need money we just go to the IMF and stand in a queue and beg for donations
Let’s emulat Botswana in the way it has managed it’s diamonds. They have just discovered the second-largest diamond. Which will certainly go towards benefiting the local communities. Meanwhile, President Mokgweetsi Masisi has conceded defeat as preliminary results showed his governing party lost its parliamentary majority. After Zanu PF tried to help him rig the elections. There was drama as Zanu PF delegation to Botswana boycotted breakfast at a local hotel. I am sure they can “smell the coffee.”
Botswana hasnt done a stellar job considering its per capita benefits. Its a tiny population as opposed to the wealth from Diamonds. Libya’s Gaddaffi used oil revenues to wipe out homelesness in his country. Every Libyan had a house In Botswana I still find people living in rondavels. Make the money work for the people not for a few rich politicians
After his coup Gaddaffi initiated free education, free health care and housing for all. Education became compulsory for both sexes. There were no special citizens being flown abroad for Medical care.
Libya’s per capita income rose to more than US$11,000 in nominal terms, and to over US$30,000 in PPP terms.
Watch “WATCH LIVE: Mnangagwa secret plan to poison Hakainde Hichilema revealed” on YouTube
Totally agree that Zambians we sleep 24/7. While other countries study more we give excuses for not doing it. Now every knowledge is in YouTube but if you see a zambian in his phone, is watching whatever thing but learning new skills.
We can’t manage our own resources….in an abundance of water a fool is thirsty
As my Dad said: “A hill full of copper without capital (investment) is just another hill more”
In Zambia we don’t have that capital, so let’s not follow the communists that hate foreign investment
Zambia be ready for bitter medicine, some investors come with conditionalities that will affect our way of life, encroach in our national strategic vision and risk our national assets or resources. We have been here before, hence our unknown debt at the time of changing government in 2021.
This mindset is crazy and will keep us poor! Foreign investment brings not only money (jobs) but also knowledge and it is our duty to learn as much as we can from them and then we will get the same jobs as expats and in the future we will be the investors!
We are in the Diaspora working hard and sending money back home and investing back home and our Government is inviting greedy looters to come and steal our minerals…
Can Saudi Arabia allow Zambians to set up oli companies in Saudi Arabia and pump oil into Zambia
We don’t have that kind of money……kikiki
Hahaha we don’t have the money and the knowledge. Case closed
Investors come to invest for their benefits.
Zambia can only be developed by zambians.
Let the government put half stake in all major
Investment.Let zambians reap from their Mines.
Yeah its up to you Zambians to develop your country. The Saudis will bring money for their investments. Knowing you Zambians you will rush to steal this money so you can personally own plots in forest 27 while the masses continue suffering with pit latrines and no drinking water in George, John Howard and Kanyama
Investors with an appetite for Zambia today, despite its numerous challenges to the rule of law, are primarily state-backed entities from places like the UAE, Saudi Arabia and China. These players are not deterred by potential expropriation due to their significant influence and access to mechanisms that can keep Zambian politicians ‘in check’. Additionally, there are those dubious investors who navigate their dealings through State House, often arriving with a packet for a minimum starting bid of $100,000. This is the stark reality we face in Zambia—a landscape that has become a breeding ground the very corruption that has landed us in this predicament of being a resource rich but persistently poor people.
Tell us more!
@ Government of gloves and graphs
Yes and soon chorela will start wrecking whilst HH and his Saudi friends are enjoying our copper
Kwina vamene vichitika, propaganda after propaganda. Njala fulu fulu pa ground, even before drought…talking and gallivanting all over, at this campaign rate, he will even start attending matebeto for any one
They buying into a stake of an already existing mine
Whats so difficult to understand about that