Vedanta to Expand Mining Investments in Saudi Arabia Amid Vision 2030 Push
Vedanta Plans $2 Billion Investment in Saudi Copper and Gold Mines as Kingdom Aims to Become Mining Hub
Vedanta Ltd. is set to increase its investments in Saudi Arabia as the Indian conglomerate bets on the kingdom’s ambitions to become a global metals and mining hub under its Vision 2030 economic transformation plan.
The company plans to begin copper and gold exploration in western Saudi Arabia within six to eight months, marking its first official foray into mineral extraction in the country.
Vedanta received a formal license on Tuesday, alongside other international players, including China’s Zijin Mining Group and Australian metals magnate Gina Rinehart’s Hancock Prospecting.
A senior executive told Bloomberg that Vedanta is targeting additional licenses to establish a complete Saudi supply chain from mining to processing. While Saudi Arabia has touted around $100 billion in mining investment opportunities, attracting major global miners at scale has been slow. Vedanta’s plans are expected to provide a significant boost to the kingdom’s mining ambitions.
“We have created a metals value chain in India, so we know what needs to be done and how to do it,” said Puneet Khurana, CEO of copper and nickel for India and Gulf Cooperation Council countries. “We are now prepared to do the same for Saudi Arabia.”
Vedanta aims to award a contract by mid-January for the exploration and development of its first mine in the Jabal Sayid belt. The company, controlled by Indian billionaire Anil Agarwal, has already committed $2 billion to build copper processing facilities in the kingdom the strongest vote of confidence to date from an international miner in Saudi Arabia’s metals strategy.
Mining has been positioned as the “third pillar” of Saudi Arabia’s Vision 2030 plan, aimed at diversifying the economy away from oil dependence. The government estimates the kingdom holds $2.5 trillion in untapped resources, including phosphate, copper, and bauxite minerals critical for the global energy transition.
Saudi Arabia aims to quadruple mining’s contribution to the economy by 2030 and attract global companies to help establish the country as a mining hub. Canada’s Barrick Gold operates a copper mine in Saudi Arabia, while Hancock Prospecting recently won exploration rights.
China’s Zijin Mining plans to increase exploration through a local partnership and expects copper and gold production in the next five years.
Vedanta broke ground on a copper-rod facility in Saudi Arabia in September, scheduled to begin production in 2026, and plans to start a copper smelter by 2028. Initially, raw copper supply for the site will come from Chile and Peru until local production ramps up, Khurana said.
The company is evaluating funding options for its Saudi projects but has not made any final decisions. Vedanta is also in discussions with key Saudi entities, including state-backed Maaden and Manara Minerals, to explore potential collaborations.
Khurana noted that Vedanta’s planned demerger will not affect its ability to increase investment. “Funding for these budgets is not going to be a big issue,” he said.
