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Adani's $1.2 billion copper smelter to import concentrates from Peru, Chile, Australia

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Large Corporate 01 Mar 2024 12:11 PM IST Economic Times

Indian billionaire Gautam Adani's group would purchase copper concentrates from Peru, Chile, and Australia to launch its $1.2 billion copper smelter, the world's largest single-location plant of its sort, According to a top company official.

Kutch Copper Ltd (KCL), an Adani Enterprises Ltd subsidiary, aims to begin operations within the next few weeks. The factory, located in the western city of Mundra in Gujarat state, would start with an initial capacity of 500,000 metric tonnes and will be expanded to 1 million metric tonnes by 2028-29.

Vinay Prakash, MD of KCL, added that the company is open to purchasing domestic and international copper assets. KCL plans to buy copper concentrates from both global miners and international traders, according to Prakash. "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.