Saudis to tap its unexplored mineral potential
Vedanta Copper International aims to invest US$2 billion in significant copper projects, encompassing a 400 KTPA greenfield copper smelter and refinery and a 300 KTPA copper rod project, which are set to be established in Ras Al Khair Industrial City of Saudi Arabia.
“Copper is widely considered to be one of the most important critical minerals in the global energy transition,” Vedanta said on 27 Nov as it announced a Memorandum of Understanding (MoU) with the Kingdom’s Ministry of Investment and Ministry of Industries & Mineral Resources https://www.bseindia.com/.
Vedanta’s initiatives support Saudi Arabia’s ambitious Vision 2030, which endeavors to unlock an estimated US$1.3 trillion in mineral resources and elevate the minerals sector’s GDP contribution from US$17 billion to US$64 billion by 2030 https://www.nseindia.com/.
Currently, the Kingdom’s copper demand is ~365 KTPA, anticipated to more than double by 2035, primarily met by imports at present https://www.aramco.com/.
Chris Griffith, Chief Executive Officer – Base Metals, Vedanta Limited, remarked, “We are thrilled and truly honoured to collaborate with the Kingdom of Saudi Arabia in its Vision 2030 initiative.
“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 https://www.manaraminerals.com/.”
Together, these projects are expected to help create thousands of new jobs, facilitate the development of hundreds of downstream industries, and will contribute ~US$19 billion to the national GDP. Over time, they will also help the Kingdom in achieving self-sufficiency in its copper supply chain.
Vedanta plans to commence operations in the Kingdom with a 125 KTPA copper rod mill project, which requires an investment of ~US$30 million. Commercial production is expected to start in full swing by Q4 FY 2025-26.
The global annual demand for copper is expected to increase by 40% by 2040 driven by the global energy transition and the move towards a sustainable future.
Vedanta Copper is a 100% subsidiary of Vedanta Limited (NSE: VEDL), an Indian multinational and one of the world’s leading critical and future minerals, energy and technology companies. Fiinews.com
