From Clara Denina

RIYADH, Jan 14 (Reuters) - Saudi Arabia's Minister of Industry and Mineral Resources , Bandar Al-Khorayef, said the Saudi Public Investment Fund (PIF) plans to spin off its subsidiary, Manarat Al-Ma'aden Investment Company, as part of its efforts to revive its overseas investment drive.

Like other Middle Eastern economies, Saudi Arabia is seeking to acquire vital minerals such as copper and lithium, essential for electric vehicles and renewable energy, as part of its efforts to reduce dependence on oil.

Manara, a joint venture between Saudi Arabian Mining Company (Ma’aden) and the Public Investment Fund, which manages assets worth $925 billion, was established in 2023 to invest in vital minerals abroad.

However, despite making bids to exploit assets across Africa and Asia, it has so far completed only one deal: a $2.5 billion 10 percent stake in Vale Base Metals, which spun off from Brazilian iron ore giant Vale in 2024.

Al-Khorayef said that separating Al-Manara Company from the investment fund would increase its focus.

"This will change the company's culture from being merely an investment tool to having greater technical capabilities," Al-Khorayef told Reuters in an interview on the sidelines of the Future Investment Forum.

He added, "The Public Investment Fund is a large investor, but it has no experience in the mining sector."

Al-Kharif did not address the timeline for the separation process, but said that discussions regarding new shareholders in Al-Manara are still ongoing, adding that they could be Saudi or foreign investors.

The Kingdom's efforts to attract foreign investment and develop the mining sector come as part of Crown Prince Mohammed bin Salman's broader plan to diversify the economy away from oil.

Riyadh estimates its untapped mineral resources, including phosphate, gold, bauxite and rare earth elements, at about $2.5 trillion.

Ma’aden is prospecting for rare earth elements and developing technology to extract lithium from seawater.

(Prepared by Hatem Ali and Abdul Hamid Makawi for the Arabic Bulletin - Edited by Ali Khafaji)