Japan, Saudi Arabia Agree to Cooperate on Mining Ventures Abroad

The Yomiuri Shimbun

14:27 JST, December 26, 2023

The government announced Monday it had signed a memorandum of understanding with Saudi Arabia to cooperate in the field of mining and mineral resources.

Tokyo will strengthen ties with Riyadh, which has large sums to invest, to cooperate in mining investment in third countries such as in Africa and secure key minerals needed to make electric vehicles and storage batteries.

Economy, Trade and Industry Minister Ken Saito and Saudi Arabia’s Industry and Mineral Resources Minister Bandar bin Ibrahim AlKhorayef signed the memorandum in Saudi Arabia on Sunday evening, Japan time.

The Japan Organization for Metals and Energy Security and Manara Minerals Investment Co., a Saudi firm that invests in the minerals sector, also signed a memorandum of understanding.

The Japanese organization and Manara aim to launch several joint investments within two years. Besides sharing information on mineral-related policies and regulations, they will also offer Japanese companies the chance to learn about Manara’s investment strategy.

Saudi Arabia is being pressed to create new industries to replace oil as countries move to cut carbon emissions. By cooperating with Japan, which has expertise in mining exploration, it aims to acquire mining interests in various countries.

Japan, for its part, will cooperate with oil-rich countries, as well as the United States and European nations, to secure lithium and other important minerals and boost economic security.