Vedanta Copper International, a subsidiary of India-based Vedanta, has announced plans to invest $2bn in copper projects in Saudi Arabia.
In line with this, Vedanta Copper International has signed a memorandum of understanding (MoU) with the Saudi Arab Ministry of Investment and Ministry of Industry and Mineral Resources.
The projects will include a 400 kilotonnes per annum (ktpa) greenfield copper smelter and refinery, along with a 300ktpa copper rod facility. The facilities are set to be located in Ras Al Khair Industrial City.
These initiatives aim to bolster Saudi Arabia’s copper production capabilities in line with the country’s Vision 2030 project.
They are also expected to reduce reliance on imports to meet domestic demand, which currently stands at 365ktpa and expected to more than double by 2035.
The copper projects are likely to generate thousands of jobs, drive the development of downstream industries, and contribute approximately $19bn to Saudi Arabia’s gross domestic product (GDP).
Besides, the initiatives are anticipated to bring about $1.3 trillion in mineral resources as well as increase the mineral sector’s GDP contribution from $17bn to $64bn by the end of the decade.
Vedanta base metals CEO Chris Griffith said: “We are thrilled and truly honoured to collaborate with the Kingdom of Saudi Arabia in its Vision 2030 initiative. 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 company aims to start operations at the proposed copper rod mill project with an investment of $30m. The facility is projected to commence commercial production by the Q4 of the 2025-26 financial year.
All necessary approvals are in place for the copper rod project, with construction slated to begin soon.
The investment comes at a time when global copper demand is projected to grow by 40% by 2040, said Vedanta.
