- Orion Resource Partners and SNB Capital formed a strategic partnership to accelerate Saudi Arabias mining and metals sector in line with Vision 2030.
- The collaboration targets critical-minerals mining and midstream projects that can reach near-term production and expand domestic processing capacity.
- Orion brings roughly $8 billion in mining-focused AUM and expertise, while SNB Capital adds local scale with about $65 billion AUM, though deal financing is undisclosed.
- Regulatory reforms and incentives support the push, but infrastructure needs and the challenge of scaling from exploration to production remain key risks.
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Key Elements of the Partnership
The newly announced collaboration between Orion Resource Partners and SNB Capital represents a pivotal moment for the mining and metals sector in Saudi Arabia. Orion, a global investment firm specializing in critical metals and strategic materials, manages more than $8 billion in assets across five offices with over 80 professionals. SNB Capital is the largest asset manager in the Kingdom, with assets under management of SAR 246 billion (~USD 65 billion) as of June 2025. This is the first strategic partnership in Saudi Arabia’s mining sector that combines such a level of global mining sector experience with substantial local institutional reach.
Strategic Rationale and Alignment with Vision 2030
The partnership aligns squarely with Saudi Arabia’s broader Vision 2030 goals, which aim to diversify the economy and reduce reliance on hydrocarbons. The mining sector has emerged as the “third pillar” of economic growth alongside oil and petrochemicals, contributing approximately SR 217.5 billion (~USD 58 billion) to GDP in Q3 2024, double its 2019 baseline. Regulatory reforms, such as the Mining Investment Law, improved licensing, and incentives for exploration, have underpinned significant growth. Saudi reserves are now estimated at SR 9.37 trillion (~USD 2.5 trillion), including rare earths, lithium, phosphate, and base metals.
Focus Areas: Near-Term Production, Critical Minerals, and Pipeline Capacity
Orion and SNB Capital intend to focus on mining and midstream projects capable of advancing into production in the near term, particularly those tied to critical minerals required for energy transition (e.g., rare earths, battery metals). The partnership also emphasizes building resilient supply chains, increasing domestic processing and value-add operations. These priorities coincide with other initiatives: for example, Saudi Arabia’s drive for locally integrated rare earth production via Ma’aden and MP Materials, and efforts to make the country a global mineral processor by 2030.
Opportunities and Strategic Leverage
- Foreign Direct Investment (FDI): This partnership could draw more capital into Saudi mining, signaling investor confidence and opening large-scale projects potentially supported by global demand.
- Supply Chain Sovereignty: By expanding midstream capabilities, Saudi Arabia may reduce dependence on processing capacity concentrated in China and elsewhere, increasing self-reliance in critical sectors.
- Industrial Diversification: Projects that move into production can create jobs and infrastructure, aligning with Saudi goals for domestic industry and value chain addition.
Challenges and Open Questions
Key uncertainties include undisclosed financial commitments by Orion and SNB Capital, which could affect scale and timelines. There may be logistical constraints: many mineral deposits lie in remote areas lacking roads, transport, water, or energy infrastructure. Environmental, permitting, and social licensing frameworks—while improving—must keep pace with project rollout to avoid delays. Finally, capital-intensive midstream and downstream operations are riskier and require large scale and certainty of feedstock supply.
Broader Context & Comparative Partnerships
This partnership comes amid several other major developments: Saudi Arabia and the U.S. are working on multi-billion-dollar mining initiatives via Orion to reduce global supply chain dependency, and Saudi firms like Maaden are forming partnerships, such as with MP Materials, to develop vertically integrated rare earth supply chains.
Strategic Implications & Conclusion
In summary, the Orion-SNB Capital partnership represents both an inflection point and an illustrative example of Saudi Arabia’s ambitions in critical minerals. If executed effectively, it could strengthen the Kingdom’s industrial base, enhance supply chain security, and unlock new revenue streams. However, success will depend on transparent financial commitments, effective infrastructure development, efficient permitting, and the ability to scale from exploration and pilot operations into commercial production.
Supporting Notes
- Orion Resource Partners has more than $8 billion in assets under management; SNB Capital is leading asset manager in Saudi Arabia with SAR 246 billion (~USD 65 billion) under management as of June 2025.
- The partnership will focus on mining and midstream projects, especially those that have the potential to advance into near-term production, with an emphasis on critical minerals and resilient supply chains.
- Saudi Arabia holds reserves valued around SR 9.37 trillion (~USD 2.5 trillion) in minerals, including rare earths, gold, phosphate, and base metals; exploration licensure has increased significantly under recent reforms.
- The mining sector contributed SRÂ217.5 billion (~USD 58 billion) to Saudi GDP in Q3 2024, doubling from its 2019 level; forecasted to reach USD 75 billion in contribution by 2030 under Vision 2030 policies.
- Regulatory reforms—including the Mining Investment Law—and improvements in licensing process (speed, transparency) are key enablers of sector growth.
- Other partnerships illustrate similar patterns: Ma’aden and MP Materials exploring rare earth supply chain development; U.S.-Saudi cooperation via lending/partnerships to reduce dependency on processing dominated by China.
- Reported challenges include infrastructure gaps in remote areas, higher fee burdens for early private markets instruments, and the complexity of turning exploration into production at scale.
- No financial commitments were disclosed in the Orion-SNB Capital deal, making assessment of scale and timing speculative.