Vedanta Ltd, a global mining major, is set to invest $2 billion in large-scale copper projects in Saudi Arabia. This strategic move, executed through its wholly-owned subsidiary Vedanta Copper International, aligns with Saudi Arabia’s Vision 2030, aiming to diversify the economy and strengthen its industrial base.
Contents
Key Details of the Investment
- Projects Overview:
- Construction of a 400 kilo-tonne per annum (KTPA) copper smelter and refinery.
- Development of a 300 KTPA copper rod manufacturing facility.
- Total planned investment: $2 billion.
- Location:
- The projects will be set up in Ras Al Khair Industrial City, a hub for Saudi Arabia’s mineral and industrial developments.
- Operational Timeline:
- Initial operations will start with a 125 KTPA copper rod mill, requiring an investment of $30 million.
- Full commercial production is expected to commence by Q4 of FY 2026.
Significance of Vedanta’s Investment
- Supporting Vision 2030:
- The projects aim to unlock $1.3 trillion in untapped mineral resources in Saudi Arabia.
- This initiative will elevate the mining sector’s GDP contribution from $17 billion to $64 billion by 2030.
- Meeting Local Demand:
- Saudi Arabia’s current copper demand stands at 365 KTPA, expected to double by 2035.
- These projects will reduce reliance on imported copper, enhancing self-sufficiency.
- Job Creation and Economic Growth:
- Thousands of new jobs are anticipated from the construction and operation phases.
- The projects are expected to contribute $19 billion to Saudi Arabia’s GDP.
Technological and Strategic Foundations
- Land and Technology Secured:
- Vedanta has acquired the necessary land and technology for the project, with on-ground work expected to begin soon.
- International Collaboration:
- Saudi Arabia’s Ministry of Mines and National Industrial Development Centre recently visited Vedanta’s India operations, strengthening bilateral cooperation.
Conclusion
Vedanta’s ambitious projects reflect a significant step forward in Saudi Arabia’s efforts to modernize its mining industry and achieve economic diversification.
By bolstering local copper production and fostering downstream industries, these investments will not only reduce import dependency but also position the kingdom as a major global player in the copper market.
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