The mining world is turning to Saudi riches for supplies of critical metals.

Friends, I know this topic is for two camps, because many find mining companies uninteresting, whether because of their problems with permits, ecology, etc., or purely for ethical reasons, mining is not very ecological and even in today's world it often uses human slavery. On the other hand, the hunger for raw materials was, still is and will be in the future.

Saudi Arabia is increasing its mining share in a USD 2.6 billion deal with Brazil. The deal announced last week sets the stage for a potentially significant shift in metals investment and mining. The move comes at a time when the question of who controls the commodities needed to sustain and decarbonize the world's economies.

The $VALE deal gives the Saudis a 10% stake in one of the world's key suppliers of nickel and copper - the base metals needed to decarbonise.

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It has also held other talks, including with Barrick Gold Corp. $GOLD about investing in a large Pakistani copper mine. In a private conversation, leaders of the top miners said the value of Thursday's deal made it clear that the Saudis are ready to throw money around. Which is a relatively untouched frontier for the international mining industry. Bringing the Saudis on board would not only ease the financial burden on Barrick but also introduce a partner that has significant political clout in Pakistan, the people said.

China has for years been the dominant buyer and a key source of financing as it sought to secure supplies for its rapid industrialization. But as tensions with the West have grown, the mining industry now faces increased pressure to look elsewhere.

Saudi Arabia is seeking to take minority stakes in global mining companies to help secure access to supplies of strategic minerals. The country is also trying to build a metals processing industry, which in turn could make it more attractive for international miners to exploit its mineral deposits. In doing so, the Saudis are seeking to diversify their economy away from oil.

But last week's $VALE deal announced last week is its first major foray into mining. Manara Minerals, a new venture between the kingdom's sovereign wealth fund and the state mining company, will acquire a stake in Vale's base metals business, giving Saudi Arabia an interest in mines from Indonesia to Canada producing copper, nickel and other industrial metals.

China is becoming less attractive, its funds less politically palatable, and that's because some institutional investors are no longer comfortable with mining because of environmental concerns.

Saudi Arabia, however, offers not only cash but also political support for companies looking to expand into the Muslim world as deposits in more traditional jurisdictions are depleted.

Saudi Arabia's deep pockets may also present some challenges for the largest producers looking for deals of their own. In an effort to gain more exposure to copper and nickel, miners have begun writing the biggest checks in more than a decade. BHP Group $BHP and Rio Tinto Group $RIO - the two largest - just completed multibillion-dollar deals to grow copper, while Glencore Plc has tried to buy Teck Resources Ltd.

Executives at the two biggest mining companies, which have spent years assessing base-metals assets such as those owned by Vale, privately said they were surprised by the price tag in last week's deal, which valued the unit at $26 billion

Saudi Arabia announced earlier this year that the new firm would invest in mining assets around the world, with an initial investment of $3.2 billion. The country hosts an annual mining conference, which this year featured the CEO of the world's largest mining company, Mike Henry of BHP $BHP, as well as the chairman of No. 2 producer Rio Tinto $RIO - a big step up from past speakers. CEOs of other leading miners are expected to attend next year.

For mining companies seeking funding, the recent crackdown by the US and Canadian governments on Chinese investment in key metals companies has changed the investment landscape. This is due to the opening up to Middle Eastern countries such as Saudi Arabia to fill the gap.

How do you look at this information regarding mining and are you investing in the mining industry, where there are some nice dividends to be found? I personally am interested in this sector and will be watching it closely and would possibly include it in my portfolio 😊.

Have a successful new investment week my friends! 🍀