Saudi Arabia studies graphite, rare earths trading platform - minister

Valecha Engineering

30/11/2023 12:24

LONDON, Nov 30 (Reuters) - Saudi Arabia is exploring the
potential launch of a new commodity trading platform for battery
materials, including graphite and rare earths, its vice minister
of industry and mineral resources said. 
    Riyadh's efforts to build an economy that is not dependent
on oil include a shift towards mining the country's untapped
mineral resources - worth about $1.33 trillion - including
copper, lithium, phosphate and gold, but also investing in
overseas assets.
    "To be a minerals hub you have to have it all and we are
studying a future minerals commodity exchange for graphite, rare
earths, lithium, cobalt and even nickel, as there is no
efficient commodity exchange nor price-finding mechanism for
some," Khalid bin Saleh Al-Mudaifer told Reuters in an
interview.   
    The Kingdom has been studying setting up the trading
platform for the past three months and it does not expect a
decision to be made before the next six, Al-Mudaifer said. 
    "We don't yet know if it would be feasible ... because the
quantities are small and the specifications differ, it's not as
easy as aluminium or crude oil."
    There are currently no exchanges offering contracts for
graphite or rare earth metals, both important materials for
electric vehicle and the energy transition.
    Lithium and cobalt can be traded on the London Metal
Exchange and Chicago Mercantile Exchange (CME).
    "We are working with a number of consultants and also with
the people who trade the commodities," he said.
    Saudi Arabia's investment fund Manara Minerals, a joint
venture between state-owned miner Ma'aden and the Public
Investment Fund (PIF), was set up in January to buy assets
overseas. It will prioritise copper, nickel, iron ore and
lithium.
    Its first major foray abroad was a deal to become a 10%
shareholder in Vale's  VALE3.SA  $26 billion copper and nickel
unit last July.

 (Reporting by Clara Denina, additional reporting by Pratima
Desai. Editing by Jane Merriman)
 ((Clara.Denina@thomsonreuters.com;))