Vedanta Copper, a subsidiary of India’s Vedanta Limited, has announced plans to invest $2 billion in the construction of copper processing facilities in Saudi Arabia. This investment is part of the country’s broader initiative to become a global leader in metals and mining. The announcement was made during an economic event where Saudi Arabia revealed nine major investment deals worth over $9.32 billion (35 billion riyals).
The $2 billion investment will fund the development of advanced copper smelting and refining plants in Saudi Arabia, capable of processing 400,000 tonnes of copper annually. Additionally, Vedanta plans to set up a facility to produce up to 300,000 tonnes of copper rods per year, a key material used in the production of electric cables.
This move comes at a time when global copper demand is surging, driven by its crucial role in renewable energy systems and the electrification of industries. According to Vedanta, worldwide copper demand is expected to rise by 40% by 2040, making it an essential material for achieving climate targets outlined in the Paris Agreement. These targets call for significant investments in renewable infrastructure, with an estimated $1 trillion in annual funding needed between 2025 and 2030.
Strategic importance for Saudi Arabia
The deal aligns with Saudi Arabia’s Vision 2030, an ambitious economic diversification program that seeks to reduce the country’s dependence on oil and tap into its untapped $2.5 trillion mineral resources. The program aims to increase the mining sector’s contribution to the national GDP from $17 billion to $64 billion by the end of the decade.
Currently, Saudi Arabia relies heavily on copper imports to meet its domestic demand, which is around 365,000 tonnes annually. This demand is expected to more than double by 2035. Vedanta’s investment is expected to significantly contribute to the country’s GDP, reducing dependence on imports, and fostering the growth of downstream industries. The projects will also create thousands of jobs, further supporting the goals of Vision 2030.