Adani's $1.2 Billion Copper Smelter to Import from Peru, Chile, Australia

By siliconindia  |  Friday, 01 March 2024, 02:29:58 PM IST

Adani's $1.2 Billion Copper Smelter to Import from Peru, Chile, Australia
Adani Group's subsidiary, Kutch Copper Ltd (KCL), is set to launch its $1.2 billion copper smelter, slated to be the world's largest single-location plant of its kind. The plant, situated in Mundra, Gujarat, will commence operations in the coming weeks. Initially boasting a capacity of 500,000 metric tons, KCL aims to scale up to 1 million metric tons by the fiscal year 2028/29.
To facilitate operations, KCL plans to source copper concentrates from Peru, Chile, and Australia. Vinay Prakash, the Managing Director of KCL, expressed openness to acquiring copper assets both in India and internationally. The company will import copper concentrates through a strategic mix of short and long-term arrangements with global miners and traders.
Prakash highlighted the significance of the copper smelter in enhancing domestic metal supplies, addressing India's robust demand driven by the construction, transport, and power sectors. India's copper imports surged following the 2018 closure of Vedanta's Sterlite Copper smelter, resulting in a gap filled by imports from countries such as Peru, Chile, Australia, and Indonesia.
Currently, only Hindalco Industries and Hindustan Copper Ltd produce copper within India. With an estimated refined copper production of 555,000 metric tons per year against domestic consumption exceeding 750,000 metric tons, India imports around 500,000 metric tons annually to meet the shortfall.
Prakash emphasized the growing demand for copper in India, propelled by initiatives such as the shift to clean energy and electric vehicles. India's copper demand is projected to double by 2030. KCL's copper smelter is positioned to play a pivotal role in addressing this demand and contributing to India's self-sufficiency in copper production.

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