The announcement of plans to invest $2 billion in copper-processing facilities in Saudi Arabia by Vedanta Copper, a subsidiary of Vedanta Limited in India, is a new step toward the kingdom's goal of becoming a global center for mining and metals.

According to the corporation, the investment would be used to build a cutting-edge smelter and refinery with a 400,000-ton capacity per year. Additionally, Vedanta intends to build a plant that can produce up to 300,000 tons of copper rods annually, which are a crucial part in the production of electric cables.

The announcement is a part of nine investment agreements worth over 35 billion riyals ($9.32 billion) that Saudi Arabia signed on Tuesday. The deals, which include collaborations with other prominent international businesses, such as China's Zijin Group, are thought to be a big aid to Riyadh's attempts to draw in foreign direct investment in order to diversify the kingdom's economy.

Saudi Arabia's Vision 2030, an ambitious goal to unleash $2.5 trillion in hidden natural resources, including phosphate, copper, gold, and bauxite, is in line with the stated investments. By the end of the decade, it also hopes to increase the mining industry's contribution to the GDP from $17 billion to $64 billion.

Saudi Arabia now imports the majority of its 365,000 tons of copper per year to fulfill domestic demand. By 2035, this number is expected to more than double. It is anticipated that Vedanta alone will boost the GDP of the kingdom by over $19 billion, lessen the country's dependency on imports, and encourage the expansion of downstream businesses, resulting in the creation of thousands of jobs.

These initiatives will increase the Kingdom's independence in the copper supply chain, according to Chris Griffith, CEO of Vedanta's Base Metals business. For many years, Saudi Arabia has led the world in hydrocarbons and oil exploration. It is now ready to use its enormous, untapped mineral potential under creative leadership.

In order to acquire assets abroad, Saudi Arabia established the investment fund Manara Minerals, a joint venture between Ma'aden and the Public Investment Fund (PIF), as part of its plan to transition away from fossil fuels.