The Gautam Adani-led group is constructing the world’s largest single-location copper manufacturing plant in Mundra, Gujarat (Adani’s $1.2 billion investment in the Mundra).
This development aims to reduce India’s reliance on imports and support the transition to cleaner energy, according to sources. The facility, costing USD 1.2 billion, is expected to commence operations in the initial phase by the end of March, with full-scale production reaching 1 million tonnes capacity by the fiscal year ending March 2029, as disclosed by two sources familiar with the project.
India has joined other nations, including China, in a rapid expansion of copper production, a crucial metal for the transition away from fossil fuels. Copper is essential for technologies vital to the energy transition, such as electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind, and batteries (Adani’s $1.2 billion investment in the Mundra).
Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), the flagship of the Adani-led group, is establishing a greenfield copper refinery project with a production capacity of 1 million tonnes per annum in two phases. In Phase 1, with a capacity of 0.5 million tonnes per annum, KCL secured financial closure through a syndicated club loan in June 2022.
Sources indicate that Adani aims to become a global leader in the copper business by leveraging the Adani Group’s strengths in resource trading, logistics, renewable power, and infrastructure.
The goal is to establish the world’s largest copper smelting complex by 2030 (Adani’s $1.2 billion investment in the Mundra). Despite India’s per capita copper consumption being estimated at 0.6 kg, compared to the global average of 3.2 kg, the country’s drive towards clean energy, increased electric vehicle adoption, and associated applications are expected to double domestic copper demand by 2030.
The Adani Group sees copper as a strategic fit within its extensive investments in energy transition, recognizing the metal’s vital role in various applications (Adani’s $1.2 billion investment in the Mundra).
As the third most used industrial metal after steel and aluminum, copper demand is surging, driven by the rapid growth of renewable energy, telecom, and electric vehicle industries. India’s current copper production has struggled to meet this demand, leading to a higher dependence on imported copper due to domestic supply disruptions.
India’s copper imports have steadily increased over the past five years. In the fiscal year 2022-2023 (April 2022 to March 2023), the country imported a record 181,000 tonnes of copper, while exports hit a record low of 30,000 tonnes, even lower than during the Covid-19 pandemic.
The estimated copper consumption for the fiscal year was 750,000 tonnes, with projections indicating a rise to 1.7 million tonnes by 2027, driven by substantial demand from the green energy sector (Adani’s $1.2 billion investment in the Mundra).
The Adani Group, actively expanding its renewable portfolio, is poised to be a significant consumer of copper. The group’s entry into copper manufacturing is seen as a natural extension of its diverse businesses, including trading, mining, logistics, infrastructure, and manufacturing.
Adani’s international presence positions it well to import copper concentrate since India’s domestic production is insufficient. The West Coast provides a strategic advantage for catering to both domestic and international markets seamlessly (Adani’s $1.2 billion investment in the Mundra).
Kutch Copper, a subsidiary of the Adani Group, will produce copper cathodes and rods, along with valuable byproducts such as gold, silver, selenium, platinum, and sulphuric acid.
The integrated complex will contribute to various industries, including manufacturing phosphatic fertilizers, detergents, pharmaceuticals, specialty chemicals, paper and sugar bleaching, and water treatment (Adani’s $1.2 billion investment in the Mundra).
The plant’s Phase I aims to produce 500,000 tonnes of refined copper annually, with Phase II expanding the capacity to 1 million tonnes per annum. The construction of Phase I is in advanced stages, with operational expectations set for 2024.
In the context of global copper production, the Adani Group’s plant emerges as one of the most efficient and environmentally friendly copper smelters in India, with a focus on reducing greenhouse gas emissions (Adani’s $1.2 billion investment in the Mundra).
The company is committed to sustainability, with a zero-liquid discharge design and exploring the use of green power and byproducts for various applications.
On a global scale, copper production is concentrated, with Chile and Peru accounting for 38% of world production. As demand grows during the energy transition, particularly in the US, China, Europe, and India, the Adani Group’s investment aligns with the broader shift from fossil fuels to renewable energy sources. By 2035, the US is projected to import a substantial portion of its copper needs.
