Adani building world’s largest copper plant
To be opened in March, $1.2-bn plant will ease dependence on copper imports
Atmanirbhar
- India’s copper imports on rise for past 5 yrs
- India imported a record 1,81,000 tons copper in 2023
- Copper the 3rd most used industrial metal after steel and aluminium
- KCL aims to be one of lowest-cost copper producers in world
New Delhi: Billionaire Gautam Adani-led group is building the world’s largest single-location copper manufacturing plant at Mundra in Gujarat, which will help cut India’s dependence on imports and aid energy transition, sources said.
The $1.2-billion facility will start operations of the first phase by March and full-scale 1 million tonnes capacity by FY29 (March 2029), two sources with knowledge of the matter said.
India joins China and other nations that are rapidly expanding production of copper, a metal crucial for transition away from fossil fuels. Technologies critical to the energy transition like electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind and batteries, all require copper.
Kutch Copper Ltd (KCL), a subsidiary of the group’s flagship Adani Enterprises Ltd (AEL), is setting up a Greenfield copper refinery project for the production of refined copper with 1 million tonnes per annum capacity in two phases. For Phase-1, capacity of 0.5 million tonnes per annum, KCL achieved financial closure through a syndicated club loan in June 2022.
“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,” one of the sources said. “Their aim is to be the world’s largest copper smelting complex by 2030.” He said India’s per capita copper consumption is estimated around 0.6 kg compared to 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,” he said.
Copper is the third most used industrial metal after steel and aluminium, and its demand is rising on the back of fast-growing renewable energy, telecom and electric vehicle industries.
