Saudi Arabian Mining Company, the Kingdom’s largest diversified mining enterprise and a subsidiary of the Public Investment Fund, has completed the acquisition of minority stakes in two aluminum-related subsidiaries through a combination of share issuance and cash payments totaling $150 million. The transaction provides Maaden with full ownership of Maaden Bauxite and Alumina Company and Maaden Aluminium Company, eliminating joint venture structures that have operated since the joint venture was created in 2009.
Transaction Structure Reflects Strategic Consolidation
The acquisition involved Maaden purchasing AWA Saudi’s entire 25.1% stake in Maaden Bauxite and Alumina Company, comprising 128.01 million ordinary shares, alongside Alcoa Saudi’s 25.1% holding in Maaden Aluminium Company totaling 165.001 million shares. The transaction was executed through a 2.26% capital increase that raised Maaden’s capital from SAR 38.027 billion ($10.27 billion) to SAR 38.887 billion ($10.50 billion), expanding the share count from 3.802 billion to 3.888 billion ordinary shares.
Under the agreement terms, Alcoa Saudi received 67.61 million Maaden shares representing 1.74% of the expanded capital, while AWA Saudi obtained 18.36 million shares equivalent to 0.47% of total shares plus SAR 562.5 million ($151.9 million) in cash consideration. The structure provides both selling parties with continued exposure to Maaden’s broader mining portfolio while eliminating their direct involvement in aluminum operations.
Operational Integration Eliminates Joint Venture Complexity
The consolidation removes joint venture governance structures that have governed the aluminum operations since their establishment, potentially streamlining decision-making processes and operational coordination. Maaden Bauxite and Alumina Company operates integrated bauxite mining and alumina refining facilities, while Maaden Aluminium Company focuses on primary aluminum smelting and downstream processing activities.
The transaction represents Maaden’s effort to consolidate control over key assets while reducing partnership complexity, though the benefits of full ownership will depend on effective integration and management execution. While unified strategic planning across the aluminum value chain may offer operational advantages, the elimination of joint venture partners also removes external expertise and risk-sharing arrangements that previously supported operations.
Financial Performance Supports Strategic Investments
Maaden reported first-quarter 2025 net profit surge of 58% to SAR 1.55 billion ($418.5 million), driven by stronger commodity prices and higher sales volumes across most product categories, excluding primary aluminum and gold. The company’s financial performance provided a foundation for the acquisition financing while maintaining balance sheet flexibility for ongoing expansion projects. Maaden’s diversified portfolio spanning phosphates, aluminum, gold, and industrial minerals has shown mixed performance across commodity price cycles, with results varying significantly based on global market conditions and operational challenges.
International Sukuk Issuance Demonstrates Market Access
During the first quarter, Maaden completed its inaugural international sukuk offering, raising $1.25 billion through two tranches with five-year and ten-year maturities. The issuance attracted orders exceeding $11.5 billion, representing 9.2 times oversubscription that reflects strong international investor interest in Saudi Arabia’s mining sector development.
The sukuk proceeds support Maaden’s expansion initiatives across multiple business segments, including the ongoing Phosphate 3 Phase 1 project and various exploration activities. The successful international debt market access provides additional financing flexibility for strategic acquisitions and capital investments aligned with Saudi Arabia’s Vision 2030 economic diversification objectives.
Market Context Reflects Aluminum Industry Dynamics
The aluminum industry has experienced mixed performance in 2025, with global primary aluminum production increasing while regional demand patterns vary significantly. Saudi Arabia’s aluminum sector benefits from low-cost energy access and integrated operations spanning the complete value chain from bauxite mining through finished products manufacturing.
Maaden’s aluminum operations serve both domestic and export markets, with production capacity supporting regional construction, automotive, and packaging demand. The consolidation occurs as global aluminum markets face supply chain adjustments and evolving demand patterns from electric vehicle adoption and renewable energy infrastructure development.
Company Background and Market Context
Saudi Arabian Mining Company operates as the Kingdom’s flagship mining enterprise with diversified operations spanning phosphates, aluminum, gold, copper, and industrial minerals. The company was established in 1997 by Royal Decree to develop Saudi Arabia’s mineral resources as part of economic diversification efforts, with the Public Investment Fund serving as the controlling shareholder.
Maaden ranks among the world’s top mining companies by market capitalization, with operations extending across multiple Saudi provinces and international partnerships supporting technology transfer and market development. The company’s strategic importance has grown as Saudi Arabia positions mining as the third pillar of its economy alongside oil and petrochemicals.
The aluminum industry serves essential functions in construction, transportation, packaging, and renewable energy applications, with global demand supported by infrastructure development and lightweighting trends. Saudi Arabia’s aluminum sector benefits from abundant energy resources and government support for industrial development, while regional demand growth provides market opportunities for expanded production capacity.
