Strategic $2 Billion Investment to Advance Vision 2030 Goals and Copper Self-Sufficiency
Vedanta Copper International, a subsidiary of Vedanta Ltd, has signed a groundbreaking memorandum of understanding (MoU) with Saudi Arabia’s Ministry of Investment and Ministry of Industries & Mineral Resources. This collaboration aims to bolster copper production within the Kingdom through a $2 billion investment in transformative projects, aligned with Saudi Arabia’s Vision 2030 initiative.
Pioneering Copper Projects in Saudi Arabia
The proposed projects include a 400 kilo tonne per annum (KTPA) greenfield copper smelter and refinery and a 300 KTPA copper rod production facility, both to be located in Ras Al Khair Industrial City. These initiatives are pivotal to unlocking Saudi Arabia’s mineral potential, estimated at $1.3 trillion, while increasing the mining sector’s GDP contribution from $17 billion to $64 billion by 2030.
Currently, Saudi Arabia imports the majority of its copper, with an annual demand of approximately 365 KTPA expected to more than double by 2035. Vedanta’s projects aim to bridge this gap, enhancing the Kingdom’s self-reliance and creating a robust copper supply chain.
Economic and Employment Impact
Chris Griffith, CEO of Vedanta Limited’s base metals division, highlighted the significance of the partnership:
“Our projects will enhance the Kingdom’s self-reliance in the copper supply chain. Saudi Arabia has been a leader in oil exploration and hydrocarbons for decades. Now, under visionary leadership, it is poised to tap into its vast, unexplored mineral potential as it embraces the 4th Industrial Revolution.”
The projects are expected to contribute approximately $19 billion to Saudi Arabia’s GDP, create thousands of jobs, and catalyze the growth of hundreds of downstream industries. This initiative will also play a key role in advancing sustainable development and economic diversification in the region, a cornerstone of Vision 2030.
A Strategic Start with Copper Rod Mill
Vedanta plans to kickstart operations with a 125 KTPA copper rod mill project, requiring an investment of $30 million. The project, which has received all necessary approvals, is set to begin construction shortly. Commercial production is anticipated by Q4 FY 2025-26.
Addressing Global Copper Demand
The global copper demand is forecasted to rise by 40% by 2040, driven by the energy transition, renewable energy expansion, and electrification. Meeting these demands aligns with the objectives of the Paris Agreement, which requires $1 trillion in annual investment between 2025 and 2030 to achieve global warming targets.
While the global copper supply is projected to peak in 2026, demand is expected to surpass supply unless new major projects are introduced. Vedanta’s initiatives in Saudi Arabia aim to address this imbalance while supporting the Kingdom’s long-term goals.
A Visionary Collaboration
This partnership signifies a strategic alignment between Saudi Arabia and Vedanta, merging advanced technology, infrastructure development, and sustainability. As Saudi Arabia positions itself as a global leader in the mining sector, this collaboration underscores a shared commitment to innovation, economic growth, and environmental stewardship.
With its ambitious plans, Vedanta is poised to play a transformative role in Saudi Arabia’s journey toward achieving copper self-sufficiency and realizing the broader goals of Vision 2030.
