Riyadh, Saudi Arabia — The Saudi Arabian Mining Company (Ma’aden) has signed an agreement to buy 9.9 percent (10.2 million) shares of American company Ivanhoe Electric for $126.5 million and to form a 50-50 joint venture in the kingdom to contribute towards conducting one of the largest exploration programs in the world.
The agreement grants Ma’aden the rights to use Ivanhoe’s Typhoon geophysical surveying technology, which will in turn accelerate the exploration of mineral sites in the kingdom that contain minerals at an estimated value of $1.3 trillion.
Ma’aden and Ivanhoe Electric will conduct exploration operations on an area estimated at 48,500 square kilometers of licensed sites in the kingdom, an area larger than the size of Denmark. The exploration operations target to discover new minerals, such as copper, nickel, gold, silver, and other strategic minerals.
Ma’aden will be able to employ Typhoon technology, which is a revolution in geophysical surveys and 3D data processing (CGI).
As part of the agreement, $66 million of the $126.5 million will be allocated and invested to establish the exploration JV in the kingdom as well as finance its exploration activities and programs.
In addition to the acquisition of three new-generation Typhoon machines, Ma’aden will also be granted the right to appoint a candidate to the board of directors of Ivanhoe Electric.
Ma’aden said the agreement will contribute to strengthening the Saudi Vision 2030, which places mining as a third pillar of the Saudi economy. It is also considered a key supporter of Ma’aden’s aims to boost its growth by 10 folds by 2040 and to exploit the mineral resources in the kingdom.
Ma’aden CEO Robert Wilt said, “Ma’aden is working on one of the largest mining exploration programs in the world in partnership with Ivanhoe Electric and this agreement is an important breakthrough to explore the potential mineral resources in the Kingdom.”
“Therefore, we need to carry out survey and exploration activities in faster and smarter ways, and cover more ground to meet our long-term growth objectives, which will be enabled by the Typhoon technology,” said Ma’aden CEO.
Wilt noted that Typhoon technology would contribute to accelerating Ma’aden exploration efforts by six times and reducing the risks associated with them, adding that it will lead the kingdom to be a significant global hub for mining exploration.
Ivanhoe Electric’s Executive Chairman Robert Friedland said that through the Typhoon technology, the Computational Geosciences’ machine-based learning software and the combined talents of the highly experienced team, the JV would have all the tools necessary to conduct a transformational exploration program for electric and precious metals in the kingdom.