Vedanta Set to Make $2 Billion Investment in Saudi Arabia

Vedanta Limited is set to invest $2 billion in Saudi Arabia to establish copper-processing facilities. This significant investment marks a major step in supporting the kingdom’s vision of becoming a global hub for mining and metals.

The investment will finance the construction of a smelter and refinery capable of processing 400,000 metric tonnes of copper per year. In addition, Vedanta plans to build a facility that will produce up to 300,000 tonnes of copper rods annually, which are crucial for electric cables.

Initial Operations and Timeline

The first phase of operations will involve a copper rod mill with an initial capacity of 125,000 tonnes per year, requiring an investment of $30 million. Full commercial production is expected to begin by 2026.

This investment aligns with Saudi Arabia’s broader efforts to attract foreign direct investment and diversify its economy as part of Crown Prince Mohammed bin Salman’s Vision 2030. The kingdom holds an estimated $2.5 trillion worth of untapped resources, including copper, gold, and phosphate.

Market Outlook and Future Production Expectations

Despite global challenges, including oversupply in copper refining from new smelters in Asia, Vedanta is optimistic about future demand. The company predicts a 40% increase in annual copper demand by 2040. Chris Griffith also foresees that rising copper prices will be essential to drive further production and development in the sector.

Chris Griffith, CEO of Vedanta Base Metals, noted that the rising global demand for copper is a primary factor driving the project. He emphasised, “This initiative aligns with Vedanta’s growth plans in both India and the Middle East, while also supporting Saudi Arabia’s industrial strategy to secure a stable copper supply chain.”

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