RIYADH: Saudi Arabia’s Ministry of Investment and Ministry of Industry and Mineral Resources have joined forces with Vedanta Copper International, a subsidiary of India’s Vedanta Ltd., to develop $2 billion worth of copper projects in the Kingdom.
The collaboration, formalized through a memorandum of understanding, represents a significant step toward advancing Saudi Arabia’s Vision 2030, which seeks to diversify the country’s industrial and mineral resources sectors.
The investment will focus on the construction of a 400,000-tonnes-per-year copper smelter and refinery, as well as a 300,000-tonnes copper rod production facility. These projects will be located in Ras Al-Khair Industrial City and are intended to reduce Saudi Arabia’s reliance on copper imports, addressing the Kingdom’s growing demand for the metal.
Currently, Saudi Arabia imports most of its annual copper requirement of 365,000 tonnes, a figure expected to more than double by 2035. This partnership will help bridge that gap and strengthen the Kingdom’s domestic copper supply.
In a broader context, these initiatives align with Saudi Arabia’s goal of unlocking its vast, untapped mineral resources, which are estimated to be worth $1.3 trillion. The country aims to increase the mining sector’s contribution to its GDP from $17 billion to $64 billion by the end of the decade.
The projects also support Vision 2030’s broader industrial diversification goals, which are focused on reducing the Kingdom’s dependence on oil revenues and fostering growth in non-oil sectors.
“We are excited and honored to collaborate with the Kingdom of Saudi Arabia in its Vision 2030 initiative,” said Chris Griffith, CEO of Base Metals at Vedanta Ltd.
“Our projects will enhance the Kingdom’s self-reliance in the copper supply chain. Saudi Arabia has been a leader in oil exploration for decades, and now, under visionary leadership, it is ready to tap into its untapped mineral potential, as it embraces the 4th Industrial Revolution.”
Vedanta Copper has already welcomed senior officials from Saudi Arabia’s Ministry of Industry and Mineral Resources, as well as the National Industrial Development Center, to its operations in India. These visits have paved the way for further high-level discussions and planning.
The first phase of the project will involve the construction of a 125,000-tonnes-per-year copper rod mill, requiring an investment of approximately $30 million. Vedanta has confirmed that all necessary approvals have been obtained, land has been acquired, and technology orders have been placed. Construction is expected to begin soon, with commercial production slated to start by the fourth quarter of fiscal year 2025-26.
Beyond the copper rod mill, Vedanta’s broader investment in copper smelting, refining, and rod manufacturing is expected to generate thousands of new jobs and stimulate the development of hundreds of downstream industries in Saudi Arabia.
Over the long term, these projects are projected to contribute approximately $19 billion to the Kingdom’s gross domestic product while helping achieve its goal of self-sufficiency in copper production.
