Vedanta to Invest $2 billion in Major Copper Projects in Saudi Arabia
Vedanta, a leading global natural resources company, recently announced its plan to invest a whopping $2 billion in major copper projects in Saudi Arabia. This move comes as Vedanta aims to capitalize on the country’s ambitious Vision 2030 and its vast mineral resources.
Collaboration with Saudi Arabian Authorities
To establish a strong foundation in the Kingdom, Vedanta Copper International, a wholly-owned subsidiary of the company, has entered into an agreement with Saudi Arabia’s Ministry of Investment and Ministry of Industries & Mineral Resources. The agreement entails the development of a greenfield copper smelter and refinery with a capacity of 400 kilo tonnes per annum (KTPA) and a 300 KTPA copper rod project.
The collaboration between Vedanta and Saudi Arabian authorities is aligned with Vision 2030, the country’s visionary plan aimed at unlocking its estimated $1.3 trillion worth of mineral resources and boosting the minerals sector’s GDP contribution from $17 billion to $64 billion by 2030.
Strategic Initiatives to Meet Growing Copper Demand
With the current copper demand in Saudi Arabia standing at approximately 365 KTPA and projected to more than double by 2035, there is immense potential for growth in the sector. At present, the country heavily relies on imports to meet this demand.
Vedanta’s planned copper smelter, refinery, and rod projects will be strategically located in Ras Al Khair Industrial City within the Kingdom. These initiatives aim to bolster the country’s copper supply chain, reduce dependency on imports, and foster domestic production capabilities. The company also aims to increase local value addition and create a robust ecosystem of downstream industries.
Establishing Jobs and Contributing to GDP
Vedanta’s investments in Saudi Arabia’s copper projects are expected to create numerous employment opportunities. Thousands of jobs will be generated, benefiting local communities and contributing significantly to the Kingdom’s GDP. The company estimates that these initiatives will contribute around $19 billion to Saudi Arabia’s GDP.
Impending Operations and Commercial Production
The initiation of the projects is slated to begin soon, with the first step being a 125 KTPA copper rod mill project requiring an initial investment of $30 million. Vedanta has obtained all necessary approvals, acquired land, and placed technology orders. The company’s target is to achieve commercial production in the fourth quarter of FY26.
Positive Progress from Strategic Discussions
To ensure the success of these projects, senior officials from Saudi Arabia’s Ministry of Mines and the National Industrial Development Centre have recently visited Vedanta’s operations in India. These visits have served to strengthen the ongoing high-level discussions between the two parties, further solidifying the foundation for successful collaboration.
Unlocking Saudi Arabia’s Copper Potential
Vedanta’s investment in major copper projects within Saudi Arabia is expected to unlock the vast potential of the country’s copper resources. With the aspirations of Vision 2030 at its core, this collaboration promises to boost the country’s economy, create jobs, and provide a significant contribution to Saudi Arabia’s self-sufficiency in its copper supply chain. These initiatives signal a promising future for both Vedanta and Saudi Arabia’s mineral sector.
