meed-logo

line1 line2 line3
SIGN IN / REGISTER

Mergers soar in global mining sector

23 February 2024

 

This month's Agenda also includes: Saudi Arabia transforms mining sector

Register for MEED's guest programme 

There was a surge in mergers and acquisition (M&A) activity in the global mining sector in 2023, extending a period of consolidation in the industry that began in the previous decade.

The total value of M&A deals in the industry increased by 75% compared to the previous year, to reach $121bn, according to a report by GlobalData. The number of M&A transactions grew 5% year-on-year to 1,526, while the number of mega deals – which are defined as deals with a transaction value of $1bn or more – stood at 16.

The Asia-Pacific region, excluding China, recorded the highest M&A deal value, surpassing North America as the leading region. Despite this, North America maintained its leadership position in terms of deal volume.

GlobalData attributes the increase in M&A activity to companies seeking to position themselves favourably amid disruptive threats in the industry.

Major deals

The year’s biggest mining M&A deal was recorded in December, when Japanese steelmaker Nippon Steel announced its $14.98bn takeover of Pittsburgh-based United States Steel.

In November, Swiss commodities giant Glencore announced it will acquire a majority 77% stake in Elk Valley Resources, the steelmaking coal business of Canadian miner Teck Resources. The transaction is valued at $6.93bn, making it the second-biggest deal of 2023.

Nippon Steel Corporation will acquire a 20% stake in Elk Valley Resources, while South Korea’s Posco will take 3%.

Within months of being established, Saudi Arabia’s Manara Minerals entered into a transaction in July with Brazilian mining major Vale to become a 10% shareholder in its $26bn subsidiary, Vale Base Metals. 

Manara Minerals teamed up with investment firm Engine No 1, which took a 3% stake in Vale Base Metals. The $3.4bn transaction was the third-biggest M&A deal in 2023.

Manara Minerals was formed in January 2023, when Saudi Arabian Mining Company (Maaden) signed a joint-venture agreement with the kingdom’s Public Investment Fund (PIF) to establish a firm that would invest in mining assets globally. Maaden owns a 51% stake and the PIF holds the other 49% in the company.

Manara Minerals aims to invest in iron ore, copper, nickel and lithium projects as a non-operating partner, taking minority equity positions.

In another key deal, Australia’s MMG entered into a share purchase agreement to acquire the parent company of Botswana’s Khoemacau copper mine, with a deal value of $1.8bn.

Prominent themes

Among all mining commodities, gold continued to account for the largest share of M&A activity in 2023, in line with the trend observed in 2022, according to the GlobalData report. Last year, there were 375 gold asset-related deals, with a combined value of $49bn.

The report identified energy transition as the most prominent theme driving M&A deal value in 2023. 

The industry is facing headwinds from stricter regulatory, social and environmental requirements when it comes to obtaining licences to develop and operate mining operations. In response, the sector is embracing the shift to a green economy and net-zero emissions. 

Most mining companies recognise the need to develop more environmentally friendly mineral exploration technologies to improve relations with local communities and advance mine development.

The estimated $17bn-worth of energy transition-themed M&A transactions last year demonstrates this commitment to a cleaner, greener future by mining companies globally.

The positive momentum of M&A activity is expected to continue into 2024. This year will likely once again see mergers of equals; major mining producers acquiring small producers to strengthen their near-term production profiles; and the strategic acquisition of high-quality, long-life development projects to bolster producers’ development pipelines.

It is also expected that mining companies will continue to prioritise projects that can increase their exposure to critical minerals, including copper, nickel, cobalt and lithium deposits – all of which are an integral part of the global electrification transition that is under way.

Saudi Arabia transforms mining sector

https://image.digitalinsightresearch.in/uploads/NewsArticle/11502734/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Abu Dhabi seeks firms for Mid Island Parkway PPP

    15 May 2026

     

    Register for MEED’s 14-day trial access 

    Modon Infrastructure, formerly known as Gridora, has invited firms to submit their registrations for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed on a public-private partnership (PPP) basis.

    The request for qualifications (RFQ) is expected to be issued to interested parties soon.

    Modon Infrastructure will act as the lead developer with the majority of the equity in the project company. It will award the engineering, procurement, and construction contractor, the operations and maintenance providers, and the advisers.

    The second phase of the MIPP involves the construction of about 11 kilometres (km) of highways, including a mix of three-, four- and five-lane highways. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

    The scope also covers the construction of three interchanges: the E20, E10 and Dumbbell interchanges on Al-Sammaliyyah Island.

    The project includes several major structures, such as the E20 interchange featuring cast-in-place box girder and void slab bridges, and the E10 interchange with cast-in-place box girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

    Further key elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island, a tunnel between Al-Sammaliyyah Island and Bilrimaid Island, and a cut-and-cover (open) tunnel on Bilrimaid Island. The project is completed with another tunnel connecting Bilrimaid Island to Um-Yifeenah Island.

    Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for package 1C.

    Phase one starts at the existing Saadiyat interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah highway. 

    It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16858325/main.jpg
    Colin Foreman
  • Oman seeks adviser for gas-fired IPPs

    15 May 2026

    Oman’s Nama Power & Water Procurement Company (PWP) has issued a request for proposals for technical consultancy services for the development of new gas-fired independent power projects (IPPs) in the sultanate.

    The state offtaker said the projects will have a total capacity of up to 2,800MW.

    The bid submission deadline is 17 June.

    While Oman is accelerating investment in renewable energy and battery storage, gas-fired thermal generation is expected to remain a core part of the country’s power mix over the coming decade.

    The Misfah and Duqm combined-cycle gas turbine power plants are advancing towards construction following the appointment of China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility as contractors.

    According to Nama PWP’s 2025 annual report, the Duqm IPP will have a total capacity of 877MW, including 555MW of early power capacity, which is scheduled to commence in Q2 2028.

    The Misfah IPP will have a total capacity of 1,700MW, including 1,203MW of early power capacity, which is scheduled to commence in the same quarter.

    Nama PWP has also recently awarded new power-purchase agreements (PPAs) to three IPPs to extend the operating life of existing gas-fired power plants beyond the expiry of their current contracts.

    The new agreements for the 750MW Sohar 2 IPP and 750MW Barka 3 IPP will take effect on 1 April 2028 and run until 31 March 2043. The agreement for the 200MW Sur IPP will commence on 1 April 2029 and run until 31 March 2044.

    The awards form part of Nama PWP’s 2028-29 procurement programme. The programme aims to secure firm generation capacity from existing assets whose current PPAs are due to expire during that period.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16857037/main4750.jpg
    Mark Dowdall
  • Alghanim submits lowest offer for Kuwait oil refinery project

    15 May 2026

    Kuwait’s Alghanim International General Trading & Contracting has submitted the lowest bid for a contract to upgrade the country’s Mina Al-Ahmadi (MAA) refinery.

    The client is state-owned downstream operator Kuwait National Petroleum Company (KNPC). The project scope covers upgrades to water transmission and storage infrastructure at the refinery.

    The contract will be delivered under an engineering, procurement and construction (EPC) model. The tender was issued in October 2025 with an initial bid deadline of 4 January 2026, which was later extended several times. The most recent rescheduling moved the deadline from 19 April to 10 May.

    Alghanim submitted a bid of KD37.0m ($120m), significantly lower than the other two bidders, both Kuwait-based: Heavy Engineering Industries & Shipbuilding Company (Heisco) at KD60.6m ($197m) and Gulf Spic General Trading & Contracting at KD63.9m ($207m).

    The project is expected to take two years to complete and will expand water storage capacity at the facility by extending existing tanks or constructing new ones. The contractor will also develop associated infrastructure and upgrade systems that transport desalinated water to the refinery, including pipelines and related equipment.

    In its 2024-25 annual report, KNPC said the project will help meet water demand for the facility’s refining and gas production units.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16852744/main.jpg
    Wil Crisp
  • Civil and piping work starts on Iraq field development

    15 May 2026

     

    Civil works and piping work have started for the project to develop a second central processing facility (CPF) at Iraq’s Ratawi oil and gas field, according to industry sources.

    The project is part of the $27bn Gas Growth Integrated Project (GGIP), which is being developed by TotalEnergies along with its partners Basra Oil Company (BOC) and Qatar Energy.

    Phase one of the GGIP is expected to be worth about $10bn.

    Work is progressing on the project despite logistical problems related to the regional conflict that broke out after the US and Israel attacked Iran on 28 February.

    While early works are ongoing, equipment needed for later stages of the project is being delayed as it was due to be transported to the project site using ships that would have travelled through the Strait of Hormuz.

    Shipping through the Strait is still severely disrupted due to the regional conflict.

    In September, Turkiye’s Enka signed a contract to develop the second CPF at Iraq’s Ratawi field as part of the second phase of the field’s development.

    Enka did not give a value for the contract, but it is believed to be worth more than $1bn.

    In November, US-based KBR was selected by Enka to provide detailed design services for the project.

    Enka’s contract covers the engineering, procurement, supply, construction and commissioning of the CPF for the project known as the Associated Gas Upstream Project Phase 2 (AGUP2).

    The aim of the AGUP2 project is to process oil and associated gas from the Ratawi oil field to increase production capacity to 210,000 barrels a day of oil and 154 million standard cubic feet a day of gas.

    GGIP masterplan

    The GGIP programme is being led by TotalEnergies, the operator, which holds a 45% stake.

    Basra Oil Company and QatarEnergy hold 30% and 25% stakes, respectively. The consortium formalised the investment agreement with the Iraqi government in September 2021.

    The four projects that comprise the GGIP are:

    • The Common Seawater Supply Project (CSSP)
    • The Ratawi gas processing complex
    • A 1GW solar power project for Iraq’s electricity ministry
    • A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)

    The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.

    China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute EPC work for the gas processing complex at the Ratawi field development.

    CPECC’s project team based in its Dubai office is performing detailed engineering work on the project.

    In August last year, TotalEnergies awarded China Energy Engineering International Group the engineering, procurement and construction (EPC) contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.

    The 1GW Ratawi solar scheme will be developed in phases, with each phase coming online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

    The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.

    Separately, in June, TotalEnergies awarded China Petroleum Pipeline Engineering an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.

    Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April, worth a combined $11m, under the GGIP scheme.

    The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.

    One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 b/d of oil on completion of the first phase, according to a statement by Wood.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16852654/main.png
    Wil Crisp
  • Abu Dhabi selects Yas Island site for $1.7bn Sphere venue

    14 May 2026

    Abu Dhabi’s Department of Culture & Tourism (DCT Abu Dhabi) and US-based Sphere Entertainment have selected Yas Island as the location for the $1.7bn Sphere Abu Dhabi project.

    The venue will be built on a plot between Yas Mall and SeaWorld Abu Dhabi, close to Yas Island’s theme parks and attractions. Construction is expected to be completed by the end of 2029. Dubai-listed Alec is understood to be the selected contractor and has been working on the project’s pre-construction phase.

    The project will be the first Sphere venue outside the US. It is expected to echo the scale of Sphere Las Vegas, with a capacity of up to 20,000 depending on configuration.

    DCT Abu Dhabi said it will coordinate enabling and infrastructure works with Abu Dhabi entities, including the Department of Municipalities & Transport and its Integrated Transport Centre, the Department of Energy, Taqa, Etihad Rail and Aldar. The scope includes road enhancements, site access and site-wide infrastructure integrated with surrounding Yas Island assets.

    Sphere Abu Dhabi is the latest addition to Abu Dhabi’s integrated tourism and destination-development pipeline on Yas Island, alongside major attractions and the Disney theme park resort that was announced in 2025.

    DCT and Sphere Entertainment finalised an agreement last year related to the construction, development and operation of the Sphere entertainment venue in Abu Dhabi. According to the agreement, Sphere Entertainment granted DCT the exclusive rights to build and operate the Sphere Abu Dhabi entertainment venue.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16837302/main.gif
    Colin Foreman