Vedanta Copper, a subsidiary of India’s Vedanta, has unveiled plans to invest $2 billion in copper-processing facilities in Saudi Arabia.
This investment underscores the kingdom’s ambition to become a global hub for metals and mining, aligning with its Vision 2030 economic diversification strategy.
The investment will fund the construction of a cutting-edge smelter and refinery with an annual production capacity of 400,000 tonnes of refined copper.
Vedanta also plans to establish a facility capable of producing up to 300,000 tonnes of copper rods annually, a key component in electric cable manufacturing.
This initiative is part of a broader set of agreements signed on Tuesday, totaling over 35 billion riyals ($9.32 billion). The deals include collaborations with major international firms such as China’s Zijin Group, further bolstering Saudi Arabia’s efforts to attract foreign investment and diversify its economy beyond oil.
The projects align with Saudi Arabia’s Vision 2030, which aims to unlock $2.5 trillion worth of untapped mineral resources, including copper, gold, phosphate, and bauxite. The initiative seeks to expand the mining sector’s GDP contribution from $17 billion to $64 billion by 2030.
Saudi Arabia currently imports most of the 365,000 tonnes of copper required to meet domestic demand. This demand is expected to more than double by 2035.
Vedanta’s projects will reduce the kingdom’s reliance on imports, contribute approximately $19 billion to its GDP, and support the growth of downstream industries, creating thousands of new jobs.
“These projects will enhance the kingdom’s self-reliance in the copper supply chain,” said Chris Griffith, CEO of Vedanta’s Base Metals division.
“Saudi Arabia has been a leader in hydrocarbons for decades. Now, under visionary leadership, it is poised to leverage its vast, unexplored mineral resources.”
Saudi Arabia is advancing its mining ambitions through Manara Minerals, a joint venture between the state-owned Ma’aden and the Public Investment Fund (PIF).
Manara Minerals has already acquired a 10% stake in Vale’s $26 billion copper and nickel spin-off, Vale Base Metals, and is pursuing a stake in Pakistan’s $7 billion Reko Diq copper and gold mine, co-owned by Barrick Gold and the Pakistani government.
Copper’s essential role in renewable energy and electrification has placed it at the forefront of global decarbonization efforts. Vedanta estimates global copper demand will increase by 40% by 2040, driven by the energy transition and the shift to sustainable transportation.
The global mining sector is bracing for a looming copper supply crunch. Vedanta, along with other major players such as BHP, has warned of a potential 10-million-tonne deficit within the next decade.
Meeting the Paris Agreement’s climate targets will require annual investments of about $1 trillion in renewable infrastructure between 2025 and 2030, further intensifying the demand for copper.
Vedanta’s $2 billion investment not only positions Saudi Arabia as a key player in the global copper supply chain but also supports the kingdom’s broader economic transformation agenda.
With the rising demand for copper driven by renewable energy and electrification, this strategic move highlights Saudi Arabia’s commitment to leveraging its mineral wealth for sustainable growth.
