Adani Group's $1.2 Billion Copper Plant Elevates India's Metal Production

Kutch Copper, a new copper refinery aiming to produce 1 million tonnes of refined copper annually, will be constructed in two phases. In June 2022, the Adani Enterprises subsidiary secured financial closure for Phase 1, which has a capacity of 0.5 million tonnes per annum, through a syndicated club loan. "Adani wants to become a global leader in the copper business, leveraging the Adani Group's strong position in resource trading, logistics, renewable power, and infrastructure", quoted one of the sources as saying. "They aim to be the world's largest copper smelting complex by 2030", the report added.

According to the report, the per capita copper consumption in India is approximately 0.6 kg, which is lower than the global average of 3.2 kg. "India's drive towards clean energy systems, increasing penetration of electric vehicles and a host of associated applications are expected to double the domestic copper demand by 2030". "The Adani Group is investing heavily in energy transition, in which copper will play a vital role. It is expanding into adjacent areas of its current capabilities, which makes the copper business a strategic fit", the report said.

It is crucial to highlight that over the last five years, India has experienced a consistent increase in imports, as domestic production has struggled to keep pace with demand. In the fiscal year 2022-2023 (April to March), the country set a record by importing 181,000 tonnes of copper, while exports hit an all-time low of 30,000 tonnes, even falling below the levels observed during the COVID-19 pandemic period, as per government data.

The country is estimated to have consumed 7,50,000 tonnes of copper in FY23 (612 KT in FY22). The number is expected to rise to 1.7 million tonnes by 2027 on the back of huge demand from the green energy industry. Global demand for copper from solar photovoltaic (PV) installations alone is estimated to double to 2.25 million tonnes in the current decade. The report said the Kutch Copper is likely to produce copper cathodes and rods as well as valuable byproducts such as gold, silver, selenium and platinum.

Furthermore, the integrated complex will generate sulphuric acid, a vital raw material used in the production of phosphatic fertilizers, detergents, pharmaceuticals, specialty chemicals, paper and sugar bleaching, and water treatment. India currently imports approximately two million tonnes of sulphuric acid.

In the initial phase, the facility is set to manufacture 500,000 tonnes of refined copper annually, accompanied by byproducts such as approximately 25 tonnes of gold, 250 tonnes of silver, 1.5 million tonnes of sulphuric acid, and 250,000 tonnes of phosphoric acid. The report indicates that the subsequent Phase II expansion will elevate the refined copper capacity to 1 million tonnes per annum. "Kutch Copper will be one of the most efficient copper smelters in India, with lower greenhouse gas emissions. Adani is striving to increase the share of renewables in the overall energy mix in our quest to be a proponent of 'green copper'", the report said quoting the source.