Dubai: Indian minerals, energy, and technology conglomerate Vedanta Copper International has inked an agreement with the Ministry of Investment and Ministry of Industries and Mineral Resources to develop $2 billion worth of copper projects in Saudi Arabia. This includes a 400 kilo-tonne per annum greenfield copper smelter and refinery and a 300 kilo-tonne per annum (KTPA) copper rod plant in Ras Al Khair Industrial City.
Copper is considered one of the most critical minerals in the global energy transition. Vedanta’s initiatives support Saudi Arabia's Vision 2030, which aims to unlock an estimated $1.3 trillion in mineral resources and elevate the minerals sector's GDP contribution from $17 billion to $64 billion by 2030.
Currently, the Kingdom's copper demand is approximately 365 KTPA, which is anticipated to double by 2035, primarily met by imports.
Chris Griffith, Chief Executive Officer – Base Metals, Vedanta Limited, said, “Our projects will enhance the Kingdom’s self-reliance in the copper supply chain. For decades, Saudi Arabia has been a leader in oil exploration and hydrocarbons.”
He added, “Now, under visionary leadership, it is poised to tap into its vast, unexplored mineral potential as it embraces the 4th Industrial Revolution."
Together, these projects are expected to help create thousands of new jobs, facilitate the development of hundreds of downstream industries, and contribute nearly $19 billion to the national GDP. “Over time, they will also help the Kingdom achieve self-sufficiency in its copper supply chain,” the companies said.
Vedanta plans to commence operations in the Kingdom with a 125 KTPA copper rod mill project, which requires an investment of approximately $30 million. Commercial production is expected to start in full swing by Q4 FY 2025-26.
The global annual demand for copper is expected to increase by 40% by 2040, driven by the global energy transition and the move towards a sustainable future.
