Vedanta to invest $2 bn in Saudi Arabia for copper projects

Vedanta Copper International, a 100% subsidiary of Vedanta Limited (“Vedanta”) (NSE: VEDL), an Indian multinational and one of the world’s leading critical and future minerals, energy and technology companies, has signed a Memorandum of Understanding (MoU) with the Ministry of Investment and Ministry of Industries & Mineral Resources of the Kingdom of Saudi Arabia.

This collaboration aims to invest $2 billion in significant copper projects, encompassing a 400 KTPA greenfield copper smelter and refinery and a 300 KTPA copper rod project, which are set to be established in Ras Al Khair Industrial City within the Kingdom. Copper is widely considered to be one of the most important critical minerals in the global energy transition.

Vedanta’s initiatives support Saudi Arabia's ambitious Vision 2030, which endeavors 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 ~365 KTPA, anticipated to more than double by 2035, primarily met by imports at present.

Chris Griffith, chief executive officer – Base Metals, Vedanta Limited, remarked, "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."

Together, these projects are expected to help create thousands of new jobs, facilitate the development of hundreds of downstream industries, and will contribute ~$19 billion to the national GDP. Over time, they will also help the Kingdom in achieving self-sufficiency in its copper supply chain.

Vedanta plans to commence operations in the Kingdom with a 125 KTPA copper rod mill project, which requires an investment of ~$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.

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Fibre2Fashion News Desk (HU)