Saudi Ma’aden and American Alcoa Sign Share Purchase, Subscription Agreement

Ma’aden headquarters in Riyadh (Asharq Al-Awsat)
Ma’aden headquarters in Riyadh (Asharq Al-Awsat)
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Saudi Ma’aden and American Alcoa Sign Share Purchase, Subscription Agreement

Ma’aden headquarters in Riyadh (Asharq Al-Awsat)
Ma’aden headquarters in Riyadh (Asharq Al-Awsat)

Saudi Arabian Mining Company (Ma’aden) and Alcoa, one of the world’s leading aluminium companies, announced on Sunday a Share Purchase and Subscription Agreement.

The agreement will see Alcoa’s share in both Ma’aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC), transfer to Ma’aden, the Saudi company said in a statement.

In exchange, Alcoa will receive cash and newly issued Ma'aden shares, thereby broadening its interest in the Saudi Arabian Mining Company.

Upon completion, this transaction will provide Ma’aden with full ownership and total operational and management control of MAC and MBAC.

In exchange, the statement said Alcoa will receive $150 million and be issued shares representing approximately 2.21% of Ma’aden’s share capital post-transaction.

By transferring from JV partner to shareholder, Alcoa is making a clear statement about its confidence in Ma’aden’s strategy and growth projections, it added.

Bob Wilt, CEO of Ma’aden, said: “Ma’aden formed our joint venture with Alcoa in 2009, as part of our drive to develop a world class aluminium business.”

“Now it’s time for our partnership to evolve. As we continue to grow our aluminium business, streamlining the management structure of this business is an important step forward for Ma’aden as we prepare for greater future growth and continue to build the mining sector as the third pillar of the Saudi economy,” he added.

For his part, Alcoa’s President and CEO, William F. Oplinger expressed confidence that under the new arrangement, that MBAC and MAC are well positioned for success.

“The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility to Alcoa, an important part of improving our long-term competitiveness,” he said.

The transaction is subject to regulatory and corporate approvals, in addition to the completion of other closing conditions that are customary for this type of transaction. The transaction is expected to be completed by Q1 2025, Ma’aden said in its statement.



Saudi Arabia Forging Ahead in Building its First Nuclear Power Plant 

Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz addresses the 68th Session of the General Conference of the International Atomic Energy Agency in Vienna. (Saudi Energy Ministry)
Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz addresses the 68th Session of the General Conference of the International Atomic Energy Agency in Vienna. (Saudi Energy Ministry)
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Saudi Arabia Forging Ahead in Building its First Nuclear Power Plant 

Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz addresses the 68th Session of the General Conference of the International Atomic Energy Agency in Vienna. (Saudi Energy Ministry)
Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz addresses the 68th Session of the General Conference of the International Atomic Energy Agency in Vienna. (Saudi Energy Ministry)

Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz underlined on Monday the importance of the nuclear security and safety system and that the responsibility for maintaining this system within any country rests entirely with the state in line with its national requirements and international obligations.

He also announced that the Kingdom is forging ahead in benefiting from nuclear energy.

“Given the importance of nuclear energy in social and economic development, the Kingdom is moving towards benefiting from nuclear energy and its radiation applications for peaceful purposes,” declared Prince Abdulaziz at the 68th Session of the General Conference of the International Atomic Energy Agency in Vienna.

“The Kingdom continues to implement its national nuclear energy project with all its components, including the construction of its first nuclear power plant to contribute to the national energy mix and to achieve the sustainable national development in accordance with the national requirements and within the framework of the international commitments,” added Prince Abdulaziz, who is also Chairman of the Board of Directors of King Abdullah City for Atomic and Renewable Energy and Chairman of the Board of Directors of Nuclear and Radiological Regulatory Commission.

The Kingdom has completed the essential administrative preparations related to nuclear regulatory framework and the requirements for implementing to the Comprehensive Safeguards Agreement and has submitted a request to the Agency in July of 2024 to rescind the Small Quantities Protocol and implement the full Comprehensive Safeguards Agreement, he revealed.

Saudi Arabia is currently working with the IAEA to finalize all necessary subsidiary arrangements for the Small Quantities Protocol to be effectively rescinded by the end of December of this year.

In his statement, Prince Abdulaziz stressed that the Kingdom continues to stand by its legally binding international commitments related to its national nuclear energy project. Its national legislation and institutional infrastructure satisfy all requirements for controlling nuclear materials and technology, as well as regulating exports, consistent with its obligations and fulfilling its important role under the international non-proliferation regime.

He extended his gratitude to IAEA Director General Rafael Grossi and the Deputy Director for Safeguards for their efforts that have allowed the Kingdom to reach this stage.

Moreover, Prince Abdulaziz announced that the Kingdom will host an international conference on nuclear emergencies in Riyadh at the end of 2025 as part of the Kingdom's focus on preparedness to nuclear emergencies and in recognition of the IAEA’s important role in this area.

The Kingdom is looking forward to the cooperation between countries to ensure the success of the conference, which will contribute to boosting the global response to nuclear and radiological emergencies, building on the IAEA and its International Emergency Center's work.

He also highlighted the Kingdom's participation in strengthening the radiological monitoring and early warning capabilities for nuclear incidents at the international center by providing the opportunity to benefit from its national capabilities in the global system of radiological monitoring and early warning.

The Kingdom is pleased to offer its capabilities to the IAEA and the International Emergency Center in other areas, including predicting the environmental impacts of nuclear and radiological incidents, said the minister.

“As part of developing the Kingdom's efforts in the cooperation with the IAEA, the Kingdom deposited, on August 7 its instrument for acceptance of the IAEA's Agreement on the Privileges and Immunities,” continued Prince Abdulaziz.

“The Kingdom is committed to several international instruments related to nuclear fields, including those concerning nuclear security, safety, and safeguards. The Kingdom is also collaborating with the IAEA to host a workshop on the Joint Convention on the Safety of Spent Fuel Management and the Safety of Radioactive Waste Management, which will invite states non-party to the Convention to boost global efforts towards the universality of this Convention,” he added.

Furthermore, Prince Abdulaziz stressed that the Kingdom has benefited from the IAEA's Integrated Regulatory Review Service (IRRS) mission, which completed its task in October 2023. He said the mission has played an effective role in assessing the national nuclear regulatory efforts and the overall integration of national nuclear regulatory framework.

It commended the Kingdom's commitment to radiation safety standards and noted the progress in the regulatory nuclear and radiological framework and the commitment to continuously developing practices according to the highest international standards.