Vedanta Copper International (VCI), a wholly-owned subsidiary of Indian minerals, energy and technology conglomerate Vedanta Limited (VEDL), has signed a Memorandum of Understanding (MoU) with Saudi Arabia's Ministry of Investment (MISA) and Ministry of Industry and Mineral Resources (MIMR) to invest $2 billion in copper projects within the Kingdom. 

The investment will fund the development of a 400 kilo tonnes per annum (KTPA) greenfield copper smelter and refinery, along with a 300 KTPA copper rod project, Vedanta said in a press statement.

These projects, to be located in Ras Al Khair Industrial City, aim to address the Kingdom’s copper demand, which currently stands at 365 KTPA and is projected to more than double by 2035. 

VCI’s initial venture includes a 125 KTPA copper rod mill requiring $30 million in investment. Land has been acquired, approvals secured, and technology orders placed.  Construction at the site is set to begin soon, with commercial production targeted for the fourth quarter of the fiscal 2025-26, the statement said. 

It said recent visits by senior officials from MIMR and the National Industrial Development Centre to Vedanta's operations in India have laid a solid foundation for further high-level discussions progressing as planned.

Saudi Arabia is aiming to unlock its estimated $1.3 trillion in mineral resources, raising the minerals sector’s GDP contribution from $17 billion to $64 billion by 2030. 

The India-listed Vedanta also operates across South Africa, Namibia, Liberia, UAE, Saudi Arabia, Korea, Taiwan and Japan with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power and glass substrate and planned forays into electronics and display glass manufacturing.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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