Vedanta Copper International, a subsidiary of Vedanta Ltd, has signed a key agreement with Saudi Arabia’s Ministry of Investment and Ministry of Industries & Mineral Resources. The partnership will invest $2 billion in copper projects in line with Saudi Arabia’s Vision 2030.
The plan includes building a 400 KTPA (kilotonne per annum) copper smelter and refinery and a 300 KTPA copper rod project.
These projects are crucial for Saudi Arabia’s goals of utilizing its estimated $1.3 trillion in mineral resources and increasing the mineral sector’s GDP contribution from $17 billion to $64 billion by 2030. Currently, the kingdom imports most of its copper, with demand expected to more than double by 2035.
Projects in Ras Al Khair Industrial City
The new facilities will be based in Ras Al Khair Industrial City. Recently, Saudi officials visited Vedanta’s operations in India, paving the way for future collaborations.
Chris Griffith, CEO of Vedanta’s Base Metals Division, shared,
“Our projects will make Saudi Arabia more self-reliant in copper production. The kingdom, renowned for its leadership in oil and hydrocarbons, is now ready to tap its mineral potential under visionary leadership.”
Driving Economic Growth
These projects will contribute $19 billion to Saudi Arabia’s GDP while creating thousands of jobs and boosting downstream industries. Over time, they will also strengthen the kingdom’s copper supply chain.
Strategic Alignment with Vision 2030
This partnership highlights Vedanta and Saudi Arabia’s shared focus on sustainable development and economic diversification. By combining advanced technologies with robust infrastructure, the collaboration supports the kingdom’s Vision 2030 goals.
Initial Projects and Timeline
Vedanta’s initial project is a 125 KTPA copper rod mill, requiring $30 million. Land has been acquired, approvals secured, and construction is set to begin soon. Full-scale production is expected by Q4 FY 2025-26.
Global Copper Demand
The global demand for copper is forecasted to grow by 40% by 2040, fueled by sustainable energy transitions and advancements in transportation electrification.
Experts estimate that $1 trillion in annual investment will be needed between 2025-2030 to meet renewable energy goals, with copper playing a critical role. However, global copper supply is predicted to peak in 2026, leaving demand to outpace supply if major projects are not initiated.
This partnership marks a pivotal step toward addressing both regional and global copper demands, solidifying Saudi Arabia’s role in the mineral sector while aligning with global sustainability efforts.
