Manara mulls global expansion in metals trading: Report

Manara Minerals, a JV between the PIF and Maaden, is in talks with Glencore Plc and Mercuria Energy Group Ltd. to explore a potential partnership

Manara Minerals Investment Co., Saudi Arabia’s state-backed mining investment vehicle, is in talks with major global commodity trading firms about expanding its trading activities, as the Kingdom seeks to strengthen its role in global metals supply chains, Bloomberg reported, citing unnamed sources.

Manara—a joint venture between the Public Investment Fund (PIF) and Saudi Arabian Mining Co. (Maaden)— held discussions with leading traders including Glencore Plc and Mercuria Energy Group Ltd. to explore a potential partnership.

The sources added that Manara is weighing several options, including setting up a formal joint trading venture, entering into an agency agreement under which a trader would provide services such as logistics support, or cooperating on a deal-by-deal basis.

The Saudi entity, which has contacted more than a dozen trading houses, is also in talks with Javelin Global Commodities, Ocean Partners Holdings, and Trafigura Group. Discussions are still at an early stage and there is no certainty a final agreement will be reached.

In 2023, Manara acquired a $2.6 billion stake in Vale SA’s base metals unit.

As part of the Vale transaction, Manara is set to receive offtake volumes of copper and nickel, which it has already put out to tender. Establishing a trading joint venture could allow Manara to extract greater value from these supplies, while potentially securing additional raw materials for Saudi Arabia and Ma’aden, Bloomberg added.