BIG move by Anil Agarwal, Vedanta to invest $2 billion in Saudi Arabia for...

Vedanta Copper International, a subsidiary of Vedanta Limited, has signed a $2 billion agreement with Saudi Arabia to develop major copper projects. The plan includes building a 400,000-tonne-per-year copper smelter and refinery and a 300,000-tonne-per-year copper rod facility.

Saudi Arabia currently imports most of its copper, with annual domestic demand reaching 365,000 tonnes. Vedanta’s new facilities aim to meet this demand locally, reducing the Kingdom’s reliance on imports. The smelter will refine raw ore into pure copper, while the rod facility will produce copper rods for cables and other industrial products.

This investment signals Vedanta’s focus shift from India to the Middle East. Vedanta once operated the Sterlite Copper plant in Tuticorin, Tamil Nadu, which supplied 40% of India’s copper needs. However, environmental issues and legal challenges led to its closure, turning India from a copper exporter to an importer.

In FY18, India exported 180,000 tonnes of copper, but by FY19, imports surged to 283,000 tonnes. By FY23, exports had dropped to 61,000 tonnes, with imports at 275,000 tonnes, disrupting India’s copper industry and jobs.

Vedanta has also regained control of Zambia’s Konkola Copper Mines, ensuring a steady supply of raw materials for its new Saudi facilities.