Saudi Arabia’s state-owned mining company has signed export agreements with four Indian chemical companies.
MA’ADEN has signed contracts to export phosphate products to Indian Potash Limited and Krishak Bharati Cooperative, and ammonia to Gujarat State Fertilizers & Chemicals Limited and Coromandel International Limited. The Saudi company has also committed to working with Krishak Bharati and Coromandel on product development, logistics and more, Maaden said in a press release on Thursday.
what is that? Phosphoric acid is derived from the related chemical phosphorus and is often used in fertilizers to help plants grow. Ammonia is a chemical that is also used in fertilizers. Some entities, such as the Abu Dhabi National Oil Company, are also investigating ammonia as an energy source.
Important reasons: Saudi Arabia is working to boost its mining sector in line with its Vision 2030 economic diversification initiative, which aims to reduce its dependence on oil.
The kingdom has had some success in this endeavor. In 2021, Saudi Arabia will become one of the world’s top 20 countries by mining production, according to the U.S. Geological Survey. According to the official Saudi news agency, revenue for the Saudi mining sector in 2021 was $194 million, up 27% from the previous year.
India is a good destination for Saudi Arabia’s phosphate and ammonia exports. The South Asian country was the world’s largest importer of both phosphorus and ammonia in 2020, according to the US-based Economic Complexity Observatory.
Saudi Arabia has sought to strengthen its ties with India in recent years, making it the country’s second largest oil supplier. Crown Prince Mohammed bin Salman visited India in 2019.
Know more: India has good economic relations with several countries in the Middle East. In April, the United Arab Emirates signed a major trade deal with India. Iranian Foreign Minister Hossein Amir Abdullahian also visited India in June to seek improved relations.
What’s next: Saudi Arabia’s Ministry of Industry and Mineral Resources is seeking $32 billion in investment in the mining and minerals sector, according to the Saudi Press Agency.
