Peru Positioned as Key Partner for Saudi Arabia’s Mineral Investments
In November, delegations from Peru and Saudi Arabia will meet in Riyadh with the expectation of signing mining agreements. This meeting signifies a strategic step in the bilateral relationship, as the Gulf nation, traditionally reliant on oil, has turned its focus towards Latin American minerals.
Saudi Arabia’s Vision 2030 Initiative
Carlos Cruz Infante, director of consulting firm Lunae Advisory, explained to DFSUD that Saudi Arabia aims to lead the global energy transition in the Southern Hemisphere through its Vision 2030 program. Spearheaded by Crown Prince Mohammed bin Salman, this initiative seeks to diversify the kingdom’s economy and reduce dependence on crude oil.
“With the backing of Saudi Aramco and the country’s sovereign wealth fund, the Public Investment Fund (PIF), Saudis have already invested billions of dollars in electric vehicle, clean energy, and electric vehicle infrastructure projects,” added the expert.
Peru’s Critical Mineral Reserves
Despite Saudi Arabia’s lack of exploited reserves of critical minerals like copper, lithium, and rare earths—essential for global electrification—Peru presents an opportunity. Gustavo De Vinatea, general manager of the Peruvian Institute of Mining Engineers (IIMP), stated that Peru produces eight out of the 17 critical minerals identified worldwide and could quickly reach eleven.
“This is a historic window of opportunity… If we successfully attract investments accompanied by cutting-edge technology and high environmental standards, Saudi Arabia can become a strategic ally for Peru’s mining sector,” De Vinatea further explained.
Peru’s Mining Projects Seeking Investment
With 67 projects valued at nearly $64 billion in Peru’s pipeline, many are awaiting investors.
Key Questions and Answers
- What is the main focus of Saudi Arabia’s recent interest in Latin America? Saudi Arabia aims to diversify its economy and reduce dependence on oil by investing in Latin American minerals, crucial for global electrification.
- Why is Peru a key partner for Saudi Arabia’s mining investments? Peru produces eight out of the 17 critical minerals identified worldwide and could quickly reach eleven, making it an attractive partner for Saudi Arabia.
- What is the significance of Saudi Arabia’s Vision 2030 program? The Vision 2030 initiative, led by Crown Prince Mohammed bin Salman, seeks to diversify Saudi Arabia’s economy and reduce its reliance on crude oil.
- What are the critical minerals essential for global electrification? Critical minerals include copper, lithium, and rare earths, which are vital for the production of electric vehicles, clean energy technologies, and other electrification efforts.
- How many mining projects in Peru are seeking investment? There are 67 mining projects in Peru valued at nearly $64 billion, many of which are awaiting investors.
