Saudi Arabian Mining Company (Ma’aden) plans to merge its aluminium units with Aluminium Bahrain (Alba) through a non-binding agreement. In exchange for Ma’aden Aluminium Company and Ma’aden Bauxite and Alumina Company, Alba will issue new shares to Ma’aden.
The agreement includes a proposal to list Alba shares on the Saudi Exchange, pending regulatory approvals. This merger aims to position the combined entity as a leading global aluminium producer.
Khalid Al Rumaihi, Chairman of Alba, stated that the merger will accelerate Alba’s growth, enhance production capacity, and expand global presence, while also exploring clean energy opportunities.
Alba, a significant aluminium smelter outside China, produces over 1.55 billion metric tonnes annually, with major shareholders including Bahrain Mumtalakat Holding Company and SABIC Industrial Investments Company.
Bob Wilt, CEO of Ma’aden, highlighted that the merger will boost economic ties between Bahrain and Saudi Arabia and advance Ma’aden’s aluminium ambitions.
In a related development, Ma’aden agreed to acquire Alcoa’s stakes in a bauxite facility and aluminium smelter for $150 million in cash and SAR3.6 billion in stock. This deal, expected to close in Q1 2025, will give Ma’aden full ownership of its aluminium business, while Alcoa retains a 2.2% stake in Ma’aden.
Ma’aden and Alcoa’s joint venture since 2009 has developed significant mining and refining facilities. Additionally, Ma’aden, in partnership with the Public Investment Fund, formed Manara Minerals to invest in international mining assets, acquiring a stake in Vale’s base metals unit.
Ma’aden’s recent gold discoveries near Mansourah Massarah indicate potential expansion in gold mining within Saudi Arabia.