Vedanta to Invest USD 2 Billion in Saudi to Set up Copper Projects
Indian metals major, Vedanta, will be investing about USD 2 billion in Kingdom of Saudi Arabia to set up Copper production facilities. A Memorandum of Understanding (MoU) was signed to this effect between Vedanta and Saudi Arabia’s Ministry of Investment and Ministry of Industries & Mineral Resources.
This information was conveyed via Vedanta’s LinkedIn post dated 27th November 2024.
Copper Smelter & Copper Rod Project Planned in Saudi
Vedanta’s investment will be targeted at setting up a 400 Kilo Tonne Per Annum (KTPA) greenfield Copper smelter, and a 300 KTPA Copper rod project in the Kingdom of Saudi Arabia. These projects will be developed in Saudi Arabia’s Ras Al Khair Industrial City.
Vedanta’s decision is in line with Kingdom of Saudi Arabia’s Vision 2030, which targets increasing the contribution of minerals (including Copper) in the country’s GDP to USD 64 billion from the current USD 17 billion.
Importance of Vedanta’s Projects to Saudi Arabia
Saudia Arabia’s exchequer is heavily dependent on its oil and gas sector, which currently makes up over half of the country’s GDP. Saudi’s Vision 2030 seeks to change this by exploiting its mineral reserves. Moreover, Saudi Arabia has also set a target to have Renewable Energy (RE) make up 50% of its power generation by 2030. It is well established that Copper is an indispensable resource for the RE sector. Vedanta’s investment, therefore, comes as an opportunity for the kingdom to attain its 2030 goals.
Investment in Saudi an Opportunity of Redemption for Vedanta
Vedanta’s investment in Saudi Arabia comes after the group’s considerable setbacks and struggles in the Copper business.
Sterlite Copper, a subsidiary of Vedanta, operated a 400 KTPA Copper plant in Thoothukudi, Tamil Nadu, which was shut down in 2018. This plant, at the time of closure, supplied 40% of India’s Copper demand. Since then the company has tried resuming operations at the plant, but the Supreme Court of India has dismissed Vedanta’s petition regarding the matter. Further, Vedanta had to go through a five-year-long legal battle to gain control of the Konkola Copper Mines in Zambia, which produce high-grade Copper. This involved depositing USD 245.75 million as settlement to various creditors of the Konkola Copper Mines.
Therefore, considering Vedanta’s struggles in its Copper endeavours so far, the company’s investment in Saudi Arabia can be seen as an opportunity of redemption.
About Vedanta Ltd.: Vedanta Ltd. is a Mumbai-headquartered Indian mining and minerals company. Vedanta’s revenue from operations during FY-24 stood at Rs. 1,41,793 crore.
