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.
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.”
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.