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A wholly-owned subsidiary of Vedanta, the India-based mineral resources company, is set to invest $2 billion in copper projects in Saudi Arabia, furthering the kingdom’s ambition to become a supply chain hub for critical minerals.
Vedanta Copper International’s plans comprise a 400 kilo tonne per annum (KTPA) greenfield copper smelter and refinery, along with a 300 kilo tonne per annum (KTPA) copper rod project.
The firm plans to commence operations in the kingdom with a 125 KPTA copper rod mill project that will require an investment of about $30 million. Full commercial production is expected to start by Q1 2025-26.
The projects are expected to help create thousands of new jobs and will contribute around $19 billion to Saudi Arabia’s GDP.
Crucially, over time, they will also help the kingdom move closer to achieving self-sufficiency in its copper supply chain, the company said.
The deal is part of the nine investment deals in metals and mining worth more than $9.32 billion that Riyadh signed with companies, including China's Zijin Group, at the World Investment Conference in the kingdom.
Early in 2024, Saudi Arabia established a $182 million mineral exploration incentive programme aspart of broader strategic plan to diversify away from an economy dependant on fossil fuels.
Meanwhile, on Tuesday, Vedanta’s London-based parent Vedanta Resources raised $800 million in a dual-tranche bond issuance.
(Reporting by Brinda Darasha; editing by Seban Scaria)
