Vedanta Copper International (VCI), a subsidiary of Vedanta Ltd., has signed an agreement with Saudi Arabia’s Ministry of Investment and Ministry of Industries & Mineral Resources to invest $2 billion in copper projects within the Kingdom. The projects, aligned with Saudi Arabia’s Vision 2030, include a 400-kilo tonne per annum (KTPA) copper smelter and refinery and a 300 KTPA copper rod facility.
The facilities will be established in Ras Al Khair Industrial City to address Saudi Arabia’s growing copper demand, which currently stands at 365 KTPA and is projected to more than double by 2035. The Kingdom currently relies heavily on imports to meet its copper needs.
“This partnership will help Saudi Arabia move closer to self-sufficiency in its copper supply chain,” said Chris Griffith, CEO of Base Metals at Vedanta Limited. “Saudi Arabia has been a leader in oil and hydrocarbons, and now it is unlocking its mineral resources to align with Vision 2030’s transformative goals.”
The initiative will contribute approximately $19 billion to Saudi Arabia’s GDP and is expected to create thousands of jobs while supporting the development of downstream industries. Vedanta also plans to start with a smaller $30 million copper rod mill project, which will have a capacity of 125 KTPA and is expected to begin commercial production by the fourth quarter of FY 2025-26.
The collaboration underscores Saudi Arabia’s efforts to diversify its economy and reduce reliance on oil. Vision 2030 aims to increase the GDP contribution of the minerals sector from $17 billion to $64 billion by 2030, tapping into the Kingdom’s estimated $1.3 trillion worth of untapped mineral resources.
Global copper demand is expected to rise by 40% by 2040, fueled by the global energy transition and electrification efforts. However, supply constraints loom, with global production expected to peak by 2026, creating an urgent need for new projects like Vedanta’s to meet long-term demand.
“Saudi Arabia’s forward-looking leadership has created the ideal environment for investments like ours, combining advanced technology with infrastructure development,” added Griffith.
