PHOTO
Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. Image used for illustrative purpose. Maxim Shemetov
Saudi Arabian energy and mining giants Aramco and Maaden on Wednesday signed a head of terms agreement to set up a minerals exploration and mining joint venture (JV) focusing on energy transition minerals, including lithium, as the kingdom pushes to tap its critical mineral reserves.
The proposed JV would focus on extracting lithium, a key component in the batteries of electric vehicles and electronic devices, from high concentration deposits as well as look at more cost-effective direct extraction technologies. Commercial lithium production could potentially commence by 2027, the companies said.
Saudi Arabia is looking to expand the extraction and production of transition minerals such as lithium, cobalt and nickel, as demand for them rises globally. The plan is part of its overall economic transformation plan known as Vision 2023, that will help the country diversify revenue streams away grom hydrocarbon.
Earlier on Wednesday, Maaden, the region’s biggest miner, announced the discovery of recoverable gold and copper deposits in its exploration areas on the Arabian Shield.
Maaden had also last year signed a JV with the PIF to establish a new company with initial paid-up capital of 187.50 million riyals ($49.50 million) that will invest in mining assets internationally to secure strategic minerals.
(Writing by Brinda Darasha; editing by Seban Scaria)