Vedanta partners with Saudi Arabia to redefine copper production in Vision 2030

Vedanta Copper International, a wholly owned subsidiary of Vedanta Limited, has announced a $2 billion investment into Saudi Arabia’s burgeoning mining sector. The agreement, signed with the Ministry of Investment and the Ministry of Industries and Mineral Resources, focuses on establishing key copper projects in Ras Al Khair Industrial City. These initiatives aim to align with Saudi Arabia’s Vision 2030, driving economic diversification and self-sufficiency in copper production.

Saudi Arabia’s copper revolution aligns with Vision 2030

Saudi Arabia is poised to become a major copper hub, addressing the Kingdom’s rising demand, which is expected to exceed 365 kilo tonnes per annum (KTPA) by 2035. This collaboration involves constructing a 400 KTPA greenfield copper smelter and refinery, alongside a 300 KTPA copper rod facility. These projects are critical in reducing Saudi Arabia’s reliance on imports, a cornerstone of Vision 2030’s economic strategy to unlock $1.3 trillion in mineral resources and increase the mining sector’s GDP contribution from $17 billion to $64 billion by 2030.

The copper smelter and refinery, alongside the rod production facility, are anticipated to create thousands of jobs and stimulate the growth of hundreds of downstream industries. Industry experts have highlighted the transformative impact of these projects on regional economic growth and the broader mining sector.

Global energy transition boosts copper demand

The timing of Vedanta’s entry into Saudi Arabia is strategic, coinciding with the global energy transition. Copper’s role as a critical component in renewable energy infrastructure, electric vehicles, and electrification is driving its demand. Analysts project that copper demand will increase by 40% by 2040, spurred by investments in sustainable energy and the push to meet global climate targets under the Paris Agreement.

The International Copper Study Group forecasts a supply-demand gap by 2026, as global copper production peaks at 26 million tonnes annually. Vedanta’s projects, therefore, not only address local needs but also position Saudi Arabia as a significant player in the global copper market.

Key investments secure Vedanta’s footprint

Vedanta’s initial $30 million investment in a 125 KTPA copper rod mill underscores its commitment to the region. With approvals secured, technology orders placed, and land acquired, work is set to commence, with commercial operations expected by the fourth quarter of FY 2025-26. Vedanta’s management indicated that the rod mill project would serve as a foundation for scaling up operations to meet Saudi Arabia’s future copper requirements.

Chris Griffith, the Chief Executive Officer of Base Metals at Vedanta Limited, emphasized the synergy between the company’s vision and Saudi Arabia’s ambition to diversify its economy. He expressed confidence that the partnership would contribute to sustainable development while leveraging advanced technology and infrastructure.

Strengthening Saudi Arabia’s sustainable growth

This collaboration highlights a shared commitment to sustainability. Vedanta, which aims to achieve net-zero carbon emissions by 2050, is integrating environmentally responsible practices into these projects. The company has committed $5 billion over the next decade toward its sustainability initiatives, reinforcing its leadership in the natural resources sector.

Vedanta’s alignment with Saudi Arabia’s Vision 2030 underscores its role in fostering innovation and economic diversification. As Saudi Arabia accelerates its mining ambitions, partnerships like this are expected to cement its position as a global leader in sustainable industrial growth.