Gulf States' Attraction to Metals Continues

Gulf states are getting further involved in the metals & energy supply chain, setting up trading units for their own production and needs, and setting up funds to take stakes in mining companies and projects.

Abu Dhabi-based International Resources Holding, the mining company part of the conglomerate chaired by powerful Emirati royal Sheikh Tahnoon bin Zayed al-Nahyan, and owner of 51% of Zambia's Mopani Copper mine, has built out a 60-person trading unit to handle energy and metals. 

Minerals Development Oman, the state-owned mining company, is also in the process of hiring a top executive to lead a 25-person trading team, according to MDO's chief executive, Mattar Al Badi.

Saudi Arabia's State-owned miner Ma'aden and sovereign Public Investment Fund have a jointly managed mining investment fund, Manara, through which it owns 10% of Vale Base Metals.  Bob Wilt, Ma'aden CEO, said last year that Manara was planning to build a trading team, and that Manara's purpose was to "secure offtake of critical minerals" to meet the needs of Saudi Arabia.

Last week also saw Abu Dhabi upping its bet on mining as Sovereign investor ADQ announced a $1.2bn joint venture with specialist metals private equity shop Orion Resource Partners, which will focus on copper, iron ore and other materials. Both sides will initially invest $600mn.  Philip Clegg, managing partner of the joint venture, said on top of buying stakes in miners, the investments were being made to secure the long-term supply of critical minerals.

See the article from the FT here:

Gulf states turn to metal trading to tap into growing demand
https://on.ft.com/4hQWXp6

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MasterMetals

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