Vedanta Copper International, a fully-owned subsidiary of Vedanta Ltd, has signed a memorandum of understanding with the Ministry of Investment and the Ministry of Industries & Mineral Resources of Saudi Arabia. This partnership aims to invest $2 billion in substantial copper projects within the kingdom, in line with Vision 2030.
The projects include a 400 kilo tonne per annum (KTPA) greenfield copper smelter and refinery, and a 300 KTPA copper rod project. These initiatives align with Saudi Arabia’s Vision 2030, which seeks to unlock an estimated $1.3 trillion in mineral resources and increase the minerals sector’s GDP contribution from $17 billion to $64 billion by 2030.
Currently, the kingdom’s copper demand is around 365 KTPA, expected to more than double by 2035, primarily met through imports. Vedanta’s projects, including the copper smelter and refinery, and the upcoming copper rod project, are planned for Ras Al Khair Industrial City.
Recent visits by senior Saudi officials to Vedanta’s operations in India have paved the way for further high-level discussions. Chris Griffith, CEO – base metals, Vedanta Limited, stated: “Our projects will enhance the kingdom’s self-reliance in the copper supply chain. Saudi Arabia, a leader in oil exploration and hydrocarbons, is now poised to tap into its vast, unexplored mineral potential under visionary leadership, embracing the 4th Industrial Revolution.”
These projects are expected to create thousands of jobs, develop hundreds of downstream industries, and contribute ~$19 billion to the national GDP. Over time, they will help the Kingdom achieve self-sufficiency in its copper supply chain. This strategic partnership reflects both Saudi Arabia and Vedanta’s commitment to sustainable development and economic diversification, integrating advanced technology with infrastructure build-out and regional growth, in line with Vision 2030 objectives.
Vedanta plans to start operations in the kingdom with a 125 KTPA copper rod mill project, requiring an investment of around $30 million. All necessary approvals are in place, land has been acquired, technology orders have been placed, and work on the project site is expected to begin shortly. Full commercial production is anticipated by Q4 FY 2025-26.
The global annual demand for copper is expected to rise by 40% by 2040. The global energy transition and move to sustainable transportation and electrification are expected to drive this growth. To meet the Paris Agreement’s global warming targets of no more than +1.5 degrees Celsius, an annual investment of around $1 trillion will be needed for global renewable infrastructure between 2025-2030. The global copper supply is projected to peak in 2026 at 26Mt, with demand likely to outpace supply if new major projects do not come online.
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