Vedanta Plans $2 billion Investment in Copper Projects in Saudi Arabia

Vedanta Ltd, a leading player in the global mining industry, has announced plans to invest $2 billion in major copper projects in Saudi Arabia. According to a PTI report on November 26, Vedanta Copper International, a wholly-owned subsidiary of Vedanta Ltd, has formalized agreements with Saudi Arabia's Ministry of Investment and Ministry of Industries & Mineral Resources. These agreements outline the development of a 400 kilo-tonne per annum (KTPA) greenfield copper smelter and refinery, along with a 300 KTPA copper rod manufacturing facility. This ambitious initiative aligns with Saudi Arabia's Vision 2030, a strategic framework aimed at diversifying the Kingdom’s economy and fostering the growth of its minerals sector.

Saudi Arabia's Vision 2030 includes a target of unlocking $1.3 trillion worth of untapped mineral resources and increasing the mining sector’s GDP contribution from $17 billion to $64 billion by 2030. As part of this vision, Vedanta's initial project in Saudi Arabia will focus on establishing a 125 KTPA copper rod mill. With an investment of $30 million, the project has already secured land and technology, and groundwork at the site is expected to commence shortly, as per the report. The copper rod mill is projected to start commercial production by the fourth quarter of FY2026, as per the news agencies.

Currently, Saudi Arabia’s copper consumption stands at 365 KTPA, with demand forecasted to double by 2035. The Kingdom relies heavily on copper imports to meet its needs, but the establishment of local copper projects aims to reduce dependency on foreign sources while catering to rising domestic demand. Vedanta’s operations will be based in Ras Al Khair Industrial City, a strategic hub for industrial and mining projects.

In addition to enhancing Saudi Arabia’s copper production capacity, Vedanta's investments are expected to generate significant economic and social benefits. The projects are anticipated to create thousands of jobs and support the growth of hundreds of downstream industries. Moreover, Vedanta estimates that its initiatives will contribute $19 billion to Saudi Arabia's GDP, further bolstering the Kingdom’s economy.

The partnership between Vedanta and Saudi Arabia has also fostered high-level engagements, with officials from the Kingdom’s Ministry of Mines and the National Industrial Development Centre recently visiting Vedanta’s operations in India. These visits have laid the groundwork for further collaboration, underscoring Saudi Arabia’s commitment to attracting foreign investment into its mining sector.

Following this announcement, Vedanta Ltd’s shares gained 0.99%, closing at Rs. 448.55, up from Rs. 444.15 in the previous session. With a diverse portfolio spanning oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminum, Vedanta is poised to play a pivotal role in advancing Saudi Arabia’s Vision 2030 and strengthening its position in the global minerals industry.