Vedanta’s $2 Billion Investment
Vedanta, led by billionaire Anil Agarwal, is set to invest $2 billion in Saudi Arabia to establish advanced copper-processing facilities. This significant foreign investment aligns with both Vedanta’s international growth aspirations and Saudi Arabia’s goal of becoming a key player in the mining sector.
Facilities and Production Capacity
The investment will fund a new smelter and refinery, designed to produce 400,000 metric tons annually, alongside a plant for up to 300,000 tons of copper rods, essential for electric cables. Vedanta Base Metals CEO Chris Griffith highlighted the increasing demand for copper, stating, It’s just impossible to ignore the demand for copper.
Initial Projects and Goals
Operations will commence with a copper rod mill requiring a $30 million investment, expected to be operational by 2026. This initial phase will have a capacity of 125 kilotons annually, marking the beginning of Vedanta’s expansion in the Middle East.
Saudi Arabia’s Mining Ambitions
Under Crown Prince Mohammed bin Salman’s economic diversification plan, Saudi Arabia aims to become a regional mining hub. The country boasts an estimated $2.5 trillion in untapped resources, including copper, gold, and bauxite, driving its strategic focus on metals processing.
Global Copper Demand
As the world shifts towards decarbonization, copper demand is projected to grow by 40% by 2040. However, new smelters in Asia have increased competition, affecting processing fees and supply chains. Griffith emphasized the need for higher copper prices to stimulate new production.
