Adani Group (Photo: Bloomberg)
Indian billionaire Gautam Adani’s group will source copper concentrates from Peru, Chile and Australia to kick-start its $1.2 billion copper smelter, the world’s biggest single-location plant of its type, a top company official said.
Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, expects to start its operations in the next few weeks.
The plant, based in the western city of Mundra in Gujarat state, will have an initial capacity of 500,000 metric tons, and the company will scale it up to 1 million metric tons by 2028/29.
The company is also open to acquiring copper assets in India and overseas, Vinay Prakash, managing director of KCL told Reuters in an interview on Thursday, without giving details.
KCL would import copper concentrates from both global miners and international traders, Prakash said.
“The sourcing involves a strategic mix of short and long-term arrangements with miners and traders worldwide, including Peru, Chile, and Australia,” Prakash said.
Prakash said the copper smelter would help boost domestic supplies of the metal. India’s demand for copper has been robust, driven by the construction, transport and power sectors.
During the first nine months of the fiscal year that began in April, India imported $2.2 billion worth of copper ore and concentrate from countries such as Peru, Chile, Australia and Indonesia.
India’s copper imports have surged since the 2018 closure of Vedanta’s Sterlite Copper smelter, which produced about 400,000 metric tons of the metal.
Currently, only Hindalco Industries, part of India’s Aditya Birla group, and state-run miner Hindustan Copper Ltd produce copper in the country.
India’s refined copper production is estimated at around 555,000 metric tons per year against domestic consumption of more than 750,000 metric tons. India imports around 500,000 metric tons of copper a year to meet the shortfall.
New Delhi’s drive towards clean energy and electric vehicles, and other similar shifts, are expected to double the country’s copper demand by 2030, Prakash said.
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First Published: Mar 01 2024 | 9:41 AM IST