Saudi Arabia’s Public Investment Fund (PIF) plans to separate Manara Minerals into a standalone entity, according to comments by Industry and Mineral Resources Minister Bandar Al-Khorayef. He said the move is meant to sharpen Manara’s focus and change its culture from being only an investment vehicle to having more technical capability. In his words, “PIF is a large investor, but they don’t have mining expertise.” The spin-out is positioned as a structural response to that gap, not just a corporate reshuffle. Al-Khorayef did not give a timeline, but said discussions over new shareholders were ongoing, and potential investors could be Saudi or foreign.
Manara was established in 2023 as a joint venture between PIF and the Saudi Arabian Mining Company (Maaden) to invest in critical minerals abroad. Reuters reported that despite bidding for assets across Africa and Asia, Manara has completed only one deal so far: a $2.5 billion purchase for a 10% stake in Vale Base Metals, which was spun off from Brazilian iron ore giant Vale in 2024. AGBI adds that Maaden holds a 51% share in the Manara joint venture, while PIF owns 67% of Maaden. Those ownership links help explain why a spin-off is being framed as a way to build operatorship-grade capability around a vehicle originally designed for international minority stakes.
Why PIF Wants More Than a Portfolio
Multiple accounts tie the planned separation to a broader shift in how Saudi capital approaches mining. Discovery Alert describes the approach as emphasizing strategic partnerships rather than direct operational control, arguing that technical mining expertise cannot be quickly acquired through capital deployment alone. In this framing, minority stakes can still matter, but only if they come with active involvement in technical decision-making that builds operational knowledge while limiting direct management responsibilities. Rare Earth Exchanges similarly highlights the official acknowledgment embedded in the plan: a sovereign balance sheet is not the same as mining know-how. Even as Manara’s marquee transaction remains the Vale Base Metals stake, the spin-out signals an intent to professionalize the platform around technical capabilities.
The Manara Minerals spinoff also lands inside Saudi Arabia’s wider push to diversify beyond oil and develop mining. Reuters reported that Riyadh estimates its untapped mineral resources at about $2.5 trillion, including phosphate, gold, bauxite, and rare earth elements. A separate Vision2030.ai summary describes a January 2024 revision to SAR 9.375 trillion, or about USD 2.5 trillion, from a 2016 baseline of roughly USD 1.3 trillion, and says mapping campaigns catalogued over 5,300 mineral occurrences. In that domestic context, changing Manara’s mandate is not only about overseas exposure. It is also about building capability that can support a longer-term mining agenda with stronger technical depth and more durable supply outcomes.
Practical constraints are already visible in some potential transactions. AGBI reported that a proposed deal involving Manara is on hold because Pakistan does not want to sell down its stake in the mine, citing Muhammad Imran Akhtar, deputy director at Frontier Works. The same report noted that in October 2024 Maaden CEO Robert Wilt said Manara was targeting long-term deals and not looking to “flip a quick return” during the market slump. Taken together, the planned spin-out, the search for new shareholders, and the emphasis on technical capability point to a model that tries to do more than buy stakes. It aims to improve execution, partner smarter, and stay aligned with long-horizon strategy.
Why is PIF planning to spin off Manara Minerals?
What has Manara Minerals completed so far in overseas mining deals?
Who owns Manara and how does Maaden fit in?
How does the Manara Minerals spinoff connect to Saudi Arabia’s domestic mining ambitions?
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