RIYADH, Saudi Arabia (MiningIR) — In a strategic move to bolster its global copper production capabilities, Vedanta Copper International, a wholly-owned subsidiary of Vedanta Limited, has signed a Memorandum of Understanding (MoU) with Saudi Arabia’s Ministry of Investment and Ministry of Industry and Mineral Resources. This collaboration entails a substantial investment of $2 billion to establish a 400 KTPA greenfield copper smelter and refinery, along with a 300 KTPA copper rod project in Ras Al Khair Industrial City.
This initiative aligns with Saudi Arabia’s Vision 2030, which aims to unlock an estimated $1.3 trillion in mineral resources and increase the minerals sector’s GDP contribution from $17 billion to $64 billion by 2030. Currently, the Kingdom’s copper demand stands at approximately 365 KTPA, a figure expected to more than double by 2035, with the majority of this demand presently met through imports.
Chris Griffith, Chief Executive Officer of Base Metals at Vedanta Limited, expressed enthusiasm about the partnership, stating, “We are thrilled and truly honoured to collaborate with the Kingdom of Saudi Arabia in its Vision 2030 initiative. Our projects will enhance the Kingdom’s self-reliance in the copper supply chain.”
The planned projects are anticipated to generate thousands of new jobs, stimulate the development of numerous downstream industries, and contribute an estimated $19 billion to the national GDP. Additionally, these developments are expected to advance Saudi Arabia’s goal of achieving self-sufficiency in its copper supply chain.
Vedanta plans to commence operations in the Kingdom with a 125 KTPA copper rod mill project, requiring an investment of approximately $30 million. Commercial production is slated to begin by the fourth quarter of the fiscal year 2025-26.
Globally, the annual demand for copper is projected to increase by 40% by 2040, driven by the global energy transition and the move towards a sustainable future. Vedanta’s investment in Saudi Arabia positions the company to meet this growing demand while supporting the Kingdom’s economic diversification efforts.
This partnership underscores Vedanta’s commitment to expanding its global footprint and contributing to the economic development of the regions in which it operates. By investing in Saudi Arabia’s burgeoning mining sector, Vedanta aims to play a pivotal role in the Kingdom’s journey towards economic diversification and industrial growth.
