Chile’s Codelco, the world’s largest copper producer, is in discussions with Saudi Arabia about potential investments in copper projects, according to an interview given by Codelco Chairman Maximo Pacheco to Reuters. The talks come as both sides look to create value through new collaborations.

Codelco has been exploring partnerships with Saudi Arabia’s mining sector, including discussions with Saudi Mining Minister Bandar al-Khorayaf and representatives from Manara Minerals, a joint venture between the Saudi Arabian Mining Company and the Public Investment Fund. Pacheco expressed optimism that a formal announcement could be made in the coming months, emphasizing the need for swift action.

According to Zawya, Saudi Arabia has been ramping up efforts to diversify its economy by investing in critical minerals like copper and lithium, which are essential for battery and electric vehicle production. As part of this strategy, the kingdom has shown interest in Chile’s lithium reserves, although Pacheco confirmed that Saudi firms are not currently on the shortlist for Codelco’s lithium project in the Maricunga salt flat.

In addition to investment opportunities, the discussions touched on technology transfer. Pacheco highlighted Saudi Arabia’s expertise in desalination and the potential of introducing advanced technologies, such as artificial intelligence, into mining operations.

Meanwhile, Codelco is working to improve its production levels, which have been challenged by declining ore grades and setbacks at major projects. The company expects its copper output to rise by 70,000 metric tons in 2025, reaching approximately 1.4 million tons.

The collaboration between Codelco and Saudi Arabia aligns with the kingdom’s broader goal of becoming a global hub for mining and EV manufacturing as part of Crown Prince Mohammed bin Salman’s economic vision.