Vedanta Copper International, a wholly-owned subsidiary of Vedanta Ltd., has signed a Memorandum of Understanding (MoU) with Saudi Arabia’s Ministry of Investment and Ministry of Industry and Mineral Resources. This collaboration aims to invest $2 billion in significant copper projects within the Kingdom, aligning with Saudi Arabia’s Vision 2030 initiative.
Key Components of the Investment:
- Greenfield Copper Smelter and Refinery: The project includes the establishment of a 400,000 tonnes per annum (tpa) greenfield copper smelter and refinery.
- Copper Rod Plant: A 300,000 tpa copper rod plant is also planned, both facilities to be located in Ras Al Khair Industrial City.
Strategic Objectives:
- Economic Diversification: This investment supports Saudi Arabia’s Vision 2030, which seeks to diversify the economy and reduce reliance on fossil fuels.
- Resource Utilization: The projects aim to unlock an estimated $1.3 trillion in mineral resources, increasing the minerals sector’s GDP contribution from $17 billion to $64 billion by 2030.
- Domestic Demand Fulfillment: With the Kingdom’s current copper demand at approximately 365,000 tpa—expected to more than double by 2035—these projects will help achieve self-sufficiency in the copper supply chain.
Economic Impact:
- Job Creation: The initiatives are expected to create thousands of new jobs.
- Downstream Industry Development: They will facilitate the development of hundreds of downstream industries.
- GDP Contribution: The projects are projected to contribute approximately $19 billion to the national GDP.
Timeline:
- Initial Operations: Vedanta plans to commence operations with a 125,000 tpa copper rod mill project, requiring an investment of approximately $30 million.
- Commercial Production: Full-scale commercial production is expected to begin by the fourth quarter of the fiscal year 2025–2026.
This strategic partnership between Vedanta and Saudi Arabia underscores a mutual commitment to economic diversification and sustainable development, positioning both entities to meet the growing global demand for copper, a critical mineral in the energy transition.
