Saudi Arabian Oil Co.(2222.SA) and Saudi Arabian Mining Co.(1211.SA) have signed a shareholders’ agreement to establish a joint venture focused on mineral exploration and hard-rock mining in Saudi Arabia, with copper expected to be the primary target.

The proposed venture would be 51% owned by Maaden and 49% by Aramco, bringing together Maaden’s mining and exploration capabilities with Aramco’s extensive geological data, subsurface expertise, artificial intelligence tools and high-performance computing resources.

The companies first disclosed plans for the partnership in January 2025.

Exploration Area Covers Nearly 10% of Saudi Arabia

The JV is expected to focus on Zone-4, also known as the Transition Zone, within the Arabian Platform.

The planned exploration area covers approximately 182,000 square kilometers, equivalent to nearly 10% of Saudi Arabia’s total land area. It stretches along a roughly 100-kilometer-wide zone running parallel to the Arabian Shield.

The scale of the area provides the venture with a substantial new exploration footprint as Saudi Arabia continues efforts to develop its mineral resources and expand the role of mining in the Kingdom’s economy.

Combining Mining Expertise With Aramco’s Subsurface Data

A key part of the partnership is the combination of Saudi Arabian Mining Co.(1211.SA)’s mineral exploration capabilities with the geological and geophysical information Aramco has accumulated through decades of subsurface activity in Saudi Arabia.

Saudi Arabian Oil Co.(2222.SA) Vice President of Transition Minerals Saleh M. Al Saleh said the venture would also draw on the company’s people, high-performance computing and AI, which are expected to play “a pivotal role in accelerating the discovery of key transition minerals.”

The JV plans to use advanced computational models and AI to identify areas with stronger geological potential, helping narrow large exploration zones into more targeted areas for further assessment.

This approach could shorten the process from regional geological screening to target identification and potential discovery.

Copper to Be the Main Exploration Target

Copper is expected to be the primary focus of the venture because of its growing importance across electric vehicles, electricity grids, renewable energy infrastructure and energy-storage systems.

The global copper market is currently valued at around $250 billion and is projected to exceed $400 billion by 2035.

In addition to copper, the JV would explore for other minerals important to energy-transition and advanced industries, including zinc, lead and rare earth elements.

Why the JV Matters

The partnership gives Saudi Arabian Mining Co.(1211.SA) access to a large new exploration area while allowing Saudi Arabian Oil Co.(2222.SA) to apply its subsurface knowledge and computational capabilities beyond its traditional energy operations.

For Saudi Arabia, the venture could support continued development of the domestic mining sector while strengthening the Kingdom’s participation in global supply chains for minerals increasingly required for electrification, renewable energy and other emerging industries.

The project also aligns with broader efforts to identify and develop more of the Kingdom’s mineral resources by combining geological expertise with newer exploration technologies.

The shareholders’ agreement does not mean the JV has been fully established yet. Its incorporation remains subject to the fulfillment of several conditions, including required corporate and regulatory approvals and antitrust clearance.