Saudi Arabia has inked a set of major investment deals to boost its mining and metals sector, including a US$2 billion (A$3.089 billion) deal with India’s Vedanta.
Vedanta plans to build copper refining and production facilities in the kingdom’s Ras Al-Khair industrial development.
“Our projects will enhance the Kingdom’s self-reliance in the copper supply chain. Saudi Arabia has been a leader in oil exploration and hydrocarbons for decades. Now, under visionary leadership, it is poised to tap into its vast, unexplored mineral potential, as it embraces the 4th Industrial Revolution,” said Vedanta Base Metals CEO Chris Griffith.
According to Vedanta, these copper projects will contribute US$19 billion to Saudi Arabia’s GDP. Saudi Arabia hopes to increase the mining sector’s portion of its GDP to $64 billion by the end of the decade, part of its Vision 2030 effort to diversify its economy.
Vedanta’s first project in Saudi Arabia will be a copper rod mill able to produce 125 kilotons per year. Commercial production at the mill is scheduled to start by Q4 of the 2025-2026 financial year.
Saudi Arabia’s annual copper usage is around 365,000 tonnes, most of which it imports.
Vedanta’s copper refinery is expected to produce 400,000 tonnes of copper each year.
Saudi Arabia also signed deals with China’s Zijin Group, Australia’s Hastings Technology Metals, and Canada’s Platinum Group Metals.
These companies aim to build facilities for zinc smelting, rare earth element processing, and platinum smelting in the kingdom.
Vedanta's (NS: VEDL) share price closed at IN₹448.40, up from the previous day's ₹443.80. Its market cap is IN₹1.752 trillion.