Saudi Arabia Signs $9 Billion Metals Deals with Firms Including Vedanta and Zijin

As part of its ambitious Vision 2030 plan to diversify the economy and reduce reliance on fossil fuels, Saudi Arabia has signed nine investment agreements in the metals and mining sector, totaling more than 35 billion riyals ($9.32 billion). Major players involved include India’s Vedanta Group and China’s Zijin Mining Group.

These deals, announced during the World Investment Conference in Riyadh, align with Saudi Arabia’s strategy to attract foreign investment and capitalize on its untapped mineral resources. The agreements promise significant economic growth and self-sufficiency in key industrial materials.

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Key Projects and Investments

1. Vedanta’s Copper Facilities:
   • Vedanta, a global oil-to-metals conglomerate, plans to build a copper smelter and refinery in Ras Al-Khair.
   • The facilities will have a production capacity of 400,000 metric tons per year (tpa), alongside a 300,000 tpa copper rod plant.
   • Total investment: 7.5 billion riyals.
   • Expected contribution: 70 billion riyals to Saudi Arabia’s economic growth.
2. Zijin’s Zinc and Lithium Facilities:
   • Zijin will invest 5–6 billion riyals in multiple phases:
     • Phase 1: A zinc smelter producing 100,000 tpa of zinc ingots and 200,000 tpa of sulfuric acid.
     • Phase 2: A lithium carbonate extraction facility to produce 60,000 tpa of battery-grade lithium carbonate.
     • Phase 3: A copper refinery for 200,000 tpa of copper cathodes and 50,000 tpa of electrolytic copper foil.
3. Rare Earth Processing by Hastings Technology Metals:
   • Australian-based Hastings will build rare earth processing facilities.
   • Total investment: 5.6–7.2 billion riyals.
   • The facilities will include:
     • A hydrometallurgical processing plant.
     • A solvent extraction separation facility.
     • A downstream processing unit for rare earth materials.
4. Platinum Group Metals Smelter:
   • A joint project between Platinum Group Metals (Canada) and Ajlan & Bros Mining (Saudi Arabia).
   • Investment: 1.9 billion riyals.
   • The facility will process platinum group metals sourced from South Africa’s Waterberg mine.

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Vision 2030 and the Mining Sector

Saudi Arabia’s Vision 2030 identifies mining as a cornerstone for economic diversification. By investing in metals like copper, zinc, and lithium, the country aims to:

• Boost GDP Contribution: Elevate the mining sector’s GDP share from $17 billion to $64 billion by 2030.
• Achieve Self-Sufficiency: Reduce dependence on imported industrial materials.
• Generate Employment: Create thousands of jobs and develop downstream industries.

The government also seeks to attract $100 billion annually in foreign investments by 2030. Last year, Saudi Arabia achieved just over a quarter of this goal, underlining the significant potential for growth.

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Conclusion

These partnerships with global giants like Vedanta and Zijin represent a pivotal moment for Saudi Arabia’s mining industry. By building advanced facilities and focusing on critical minerals like copper and lithium, the kingdom is positioning itself as a leader in the global transition to clean energy and sustainable industrial practices.

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