15.3 C
Belgrade
28/05/2024
Mining News

Jeddah emerges as key hub for copper and zinc metals with London Metal Exchange warehouse

Jeddah is poised to become a pivotal center for copper and zinc metals as the London Metal Exchange (LME) prepares to establish a new warehouse in the city.

In a bid to bolster Saudi Arabia’s status as a global alloy hub, the LME is refining its warehouse location framework through consultations. These adjustments aim to address concerns regarding depot operator insolvency, ensuring seamless access to metal assets for owners.

Supported by

Pending the conclusion of the consultation by April 30, 2024, and subsequent policy modifications, Jeddah’s coastal hubs will formally be designated as delivery points, marking a significant milestone in the city’s and the Kingdom’s industrial and logistical progress.

Following standard protocol for location listings, Jeddah will activate as a delivery point three months after the approval of the initial warehouse company in the area.

Matthew Chamberlain, CEO of the LME, underscores the exchange’s commitment to expanding its network, highlighting Saudi Arabia’s growing influence in the global alloy industry. He stated, “Saudi Arabia is an increasingly important global metals hub, and Jeddah fully meets the operational and logistical criteria for new warehouse locations.”

Farooq Shaikh, CEO of LogiPoint, a prominent company operating integrated management parks in Saudi Arabia, hailed the initiative as a testament to the success of the Kingdom’s National Industrial Development and Logistics Program. He expressed optimism about the collaboration with LME, aiming to position Jeddah and Saudi Arabia as major metals logistics hubs serving the Middle East, North, and East Africa regions.

The National Industrial Development and Logistics Program focuses on propelling the Kingdom into a leading industrial powerhouse and a global supply chain hub across promising growth sectors such as industry, mining, energy, and logistics.

Established in 1877, the London Metal Exchange serves as the international hub for industrial metals trading, facilitating a significant portion of non-ferrous alloy futures transactions. In 2023 alone, it witnessed 149 million lots traded, amounting to $15 trillion and 3.5 billion tonnes in notional terms, with peak open interest reaching 1.9 million lots.

Related posts

Bridging environmental concerns: Serbia’s lithium extraction dilemma

David Lazarevic

Lithium mining divides Portugal’s rural communities

David Lazarevic

Lundin Mining adopts sustainability-linked loan structure to enhance environmental and social impact

David Lazarevic
error: Content is protected !!