Vedanta Copper International, a subsidiary of Vedanta Ltd, has partnered with Saudi Arabia’s Ministry of Investment and Ministry of Industries & Mineral Resources to invest $2 billion in copper projects. This aligns with Saudi Arabia’s Vision 2030, aiming to significantly boost the minerals sector.
The projects include a 400 KTPA greenfield copper smelter and refinery and a 300 KTPA copper rod project. These initiatives will support Saudi Arabia’s goal to increase its minerals sector’s GDP contribution from $17 billion to $64 billion by 2030. The current copper demand in Saudi Arabia is approximately 365 KTPA, expected to more than double by 2035.
These projects will be located in Ras Al Khair Industrial City. Recent visits from Saudi officials to Vedanta’s India operations have paved the way for further discussions. Vedanta’s CEO of base metals, Chris Griffith, stated that these projects would enhance Saudi Arabia’s self-reliance in copper supply, tapping into its unexplored mineral potential.
This collaboration is expected to create thousands of jobs and contribute $19 billion to the national GDP, moving Saudi Arabia closer to copper self-sufficiency. It highlights a commitment to sustainable development and economic diversification, in line with Vision 2030.
Vedanta plans to start with a 125 KTPA copper rod mill project, investing about $30 million. With approvals in place and land acquired, construction will begin soon, aiming for full production by Q4 FY 2025-26.
Globally, copper demand is projected to rise 40% by 2040, driven by the energy transition and sustainable transportation needs. Achieving global warming targets will require substantial investment in renewable infrastructure, with global copper supply peaking in 2026. New projects like Vedanta’s are crucial to meet this growing demand.
