The CEO of Saudi Mining Company Ma'aden, Robert Wilt, announced on Wednesday that the company is working on extracting lithium from seawater amid intensifying competition for the rare metal between the United States and China. Wilt stated that Ma'aden, the largest mining company in the Gulf, is trying to distance itself from the conflict and "do what is best for the Kingdom."
In an interview with Reuters, Wilt said, "We are working on an initiative to extract lithium from seawater, in addition to some other things. I say that there is nothing at a large scale; we are still in the experimental phase." Lithium is a key metal used in electric vehicle batteries, laptops, and smartphones. Ma'aden is 67% owned by the Public Investment Fund, the Kingdom's sovereign wealth fund.
Recently, Ma'aden launched a joint venture called Manarah for Minerals, which aims to invest in mining assets abroad. Wilt noted, "We have reduced our financial portfolio risks regarding expanding exploration and operations outside the Kingdom to ensure that we can withstand whatever happens geopolitically."
He mentioned that the Kingdom is developing an automotive industry that will require electric vehicle battery materials, implying that these may not be found in a timely manner as factories are being built, thus necessitating overseas sourcing.
However, Saudi Arabia's priority is also to secure steel and iron ore from abroad, given its strong push to build ambitious mega-projects. Wilt remarked, "Look out the window and see the cranes and the massive projects happening here; there is a huge appetite for steel."
He added that the company also aims to nearly double its production from phosphate and gold mines. "We are in the final stages of operating the largest gold mine in the Kingdom, the Mansourah-Massarah project, which will nearly double our gold production." The Mansourah-Massarah project is expected to contribute around 250,000 ounces of gold annually.
Ma'aden is facing challenges with declining global metal prices and saw its profits drop by more than 90% in the second quarter. Wilt mentioned that prices are recovering, saying, "Prices seem to be stabilizing at a higher level than they were at the beginning of the cycle."
In a previous earnings report, Ma'aden indicated it is exploring increasing debt in international markets. Wilt added, "We recently requested a credit rating for investment grade... and all of this is preparing for significant growth over the next 15 years or so."
