Saudi Arabia is set to advance its industrial sector through a new collaboration with Vedanta Copper International, a branch of India’s Vedanta Ltd. The partnership, involving a $2 billion investment, aims to develop copper projects in the Kingdom.
This collaboration, established via a memorandum of understanding, supports Saudi Arabia’s Vision 2030 initiative. The vision seeks to diversify and strengthen the country’s industrial and mineral resources.
The investment will fund the construction of a 400,000-tonnes-per-year copper smelter and refinery, alongside a 300,000-tonnes copper rod production facility in Ras Al-Khair Industrial City. These projects are designed to decrease Saudi Arabia’s dependency on copper imports, addressing the increasing domestic demand for the metal.
Saudi Arabia currently imports most of its 365,000-tonne annual copper requirement. This figure is expected to more than double by 2035. The partnership aims to bridge this gap and enhance the Kingdom’s internal copper supply.
These initiatives align with Saudi Arabia’s broader objective of tapping into its untapped mineral wealth, valued at an estimated $1.3 trillion. The country plans to elevate the mining sector’s contribution to its GDP from $17 billion to $64 billion by the end of the decade.
Additionally, the projects support the Vision 2030 goal of reducing reliance on oil revenues by promoting growth in non-oil sectors.
“We are excited and honored to collaborate with the Kingdom of Saudi Arabia in its Vision 2030 initiative,” stated Chris Griffith, CEO of Base Metals at Vedanta Ltd.
“Our projects will enhance the Kingdom’s self-reliance in the copper supply chain.”
Vedanta Copper has engaged with senior officials from Saudi Arabia’s Ministry of Industry and Mineral Resources, fostering further discussions and planning. The first project phase involves a 125,000-tonnes-per-year copper rod mill, with a $30 million investment. With all approvals secured, construction is anticipated to commence soon, aiming for commercial production by the fourth quarter of fiscal year 2025-26.
The larger investment in copper smelting, refining, and rod manufacturing is expected to create thousands of jobs and stimulate numerous downstream industries. Over time, these projects could contribute approximately $19 billion to Saudi Arabia’s GDP, advancing its goal of self-sufficiency in copper production.
