The Adani Group, led by Indian billionaire Gautam Adani, is set to launch its $1.2 billion copper smelter, the world’s largest single-location facility of its kind, sourcing copper concentrates from Peru, Chile, and Australia to kick-start operations, a senior company official revealed.
Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, is gearing up to commence operations in the upcoming weeks. Situated in Mundra, Gujarat, the plant will initially boast a capacity of 500,000 metric tons, with plans to ramp it up to 1 million metric tons by 2028/29.
Vinay Prakash, Managing Director of KCL, shared in an interview with Reuters on Thursday that the company is open to potential acquisitions of copper assets both domestically and internationally.
KCL will import copper concentrates from global miners and traders, establishing a strategic mix of short and long-term arrangements with stakeholders worldwide, including sourcing from Peru, Chile, and Australia.
Prakash emphasized that the copper smelter will contribute to enhancing domestic metal supplies, aligning with India’s robust demand for copper driven by sectors such as construction, transport, and power.
India’s copper ore and concentrate imports during the initial nine months of the fiscal year amounted to $2.2 billion from countries like Peru, Chile, Australia, and Indonesia.
Following the closure of Vedanta’s Sterlite Copper smelter in 2018, which previously produced approximately 400,000 metric tons of copper, India’s copper imports have surged. Presently, Hindalco Industries and state-run Hindustan Copper Ltd are the primary copper producers in the country.
With India’s refined copper production estimated at around 555,000 metric tons annually against a domestic consumption exceeding 750,000 metric tons, the country imports approximately 500,000 metric tons of copper annually to bridge the shortfall.
Prakash highlighted that New Delhi’s push towards clean energy initiatives, electric vehicles, and similar transitions are anticipated to double India’s copper demand by 2030, underscoring the evolving landscape of the country’s metal market.