The Saudi Arabian Mining Company, Ma’aden, has announced a significant acquisition deal involving Alcoa’s stakes in a bauxite facility and an aluminium smelter. The transaction, valued at $150 million in cash and SAR 3.6 billion in stock, will see Alcoa transfer its ownership in Ma’aden Aluminium Company and Ma’aden Bauxite and Alumina Company to Ma’aden.
Upon completion of this deal, expected in the first quarter of 2025 pending regulatory and corporate approvals, Ma’aden will fully control its aluminium business, while Alcoa will retain a 2.2% stake in Ma’aden. This move is seen as a strategic step for both companies. According to Alcoa’s President and CEO, William F. Oplinger, it will enhance the visibility of their investment in Saudi Arabia and provide financial flexibility, bolstering their long-term competitiveness.
Ma’aden and Alcoa initially partnered in 2009 to develop a $10.8 billion bauxite mine, refinery, smelter, and other facilities. This joint venture was part of Saudi Arabia’s broader strategy to diversify its economy beyond oil and tap into other natural resources.
Bob Wilt, CEO of Ma’aden, emphasized that streamlining the management structure of their aluminium business is crucial for future growth and strengthening the mining sector as a key pillar of the Saudi economy.
In addition to this acquisition, Ma’aden has been expanding its mining ventures. The company recently formed a venture with the Public Investment Fund, named Manara Minerals, which aims to invest up to SAR 11.95 billion in international mining assets. Their first major deal involved acquiring a 10% stake in Vale’s base metals unit.
Moreover, Ma’aden has discovered new gold deposits near its Mansourah Massarah gold mine, indicating potential growth in the kingdom’s gold mining sector.