On Tuesday, Saudi Arabia announced nine significant investment deals in the metals and mining sector, collectively valued at over 35 billion riyals (approximately $9.32 billion). These agreements were unveiled during the World Investment Conference in Riyadh, part of the Global Supply Chain Resilience Initiative under the Saudi government’s National Investment Strategy.
Key Highlights:
Vision 2030 Goals: The investments align with Saudi Arabia’s Vision 2030 plan, which aims to diversify the economy and reduce dependence on fossil fuels. The government aspires to attract $100 billion annually in foreign investments by 2030, having achieved just over a quarter of that target last year.
Major Deals:
Vedanta: The Indian conglomerate will invest 7.5 billion riyals to establish copper facilities in Ras Al-Khair. This includes a smelter and refinery with a capacity of 400,000 metric tons per annum (tpa) and a 300,000 tpa copper rod plant. The project is expected to enhance domestic copper production and contribute approximately 70 billion riyals to economic growth.
Zijin Group: The Chinese company plans to invest between 5 billion and 6 billion riyals. The first phase involves constructing a zinc smelter with a capacity of 100,000 tpa of zinc ingots and 200,000 tpa of sulfuric acid. Subsequent phases will include a lithium carbonate extraction facility and a copper refinery.
Hastings Technology Metals: The Australian firm will invest between 5.6 billion and 7.2 billion riyals to develop processing facilities for rare earth elements, including a hydrometallurgical processing plant and a downstream processing facility.
Platinum Group Metals: The Canadian company is collaborating with local firm Ajlan & Bros Mining to study the construction of a 1.9 billion riyal platinum group metals smelter and base metals refinery, sourcing feedstock from South Africa’s Waterberg mine.
Strategic Benefits:
Chris Griffith, Vedanta’s base metals CEO, highlighted the attractive incentives offered by Saudi Arabia, such as land, water, and power services, as well as the potential for lower capital costs. The company is also considering partnerships with local firms to advance its projects.