Adani’s $1.2 Billion Copper Plant to Transform India’s Metal Landscape
In a significant stride toward self-reliance in metal production, the Gautam Adani-led group is constructing the world’s largest single-location copper manufacturing plant in Mundra, Gujarat. This $1.2 billion facility is poised to commence its first-phase operations by March-end, with full-scale 1 million tonnes capacity expected by March 2029.
The move aligns India with global players like China, as the nation expands copper production to meet the demands of emerging technologies crucial for transitioning away from fossil fuels. Electric vehicles, charging infrastructure, solar photovoltaics, wind, and batteries all necessitate copper.
Kutch Copper Ltd (KCL), an Adani Enterprises subsidiary, is spearheading this greenfield copper refinery project, envisioning refined copper production of 1 million tonnes per annum in two phases. Phase-1, boasting a capacity of 0.5 million tonnes per annum, achieved financial closure in June 2022 through a syndicated club loan.
Adani’s strategic vision is to become a global leader in the copper business, leveraging the group’s strengths in resource trading, logistics, renewable power, and infrastructure. The aim is to establish the world’s largest copper smelting complex by 2030.
India’s per capita copper consumption, estimated at around 0.6 kg, pales in comparison to the global average of 3.2 kg. With a focus on clean energy, electric vehicle penetration, and associated applications, India’s copper demand is projected to double by 2030.
Copper, being the third most used industrial metal, witnesses rising demand from renewable energy, telecom, and electric vehicle industries. India’s copper production has struggled to meet this surge in demand, leading to increased dependency on imports.
The Adani Group’s foray into copper manufacturing is a logical extension of its diversified businesses, spanning trading, mining, logistics, infrastructure, and manufacturing. The west coast location provides a strategic advantage for seamless market access.
Kutch Copper’s integrated complex will not only produce refined copper but also valuable byproducts like gold, silver, selenium, platinum, sulphuric acid, and phosphoric acid. The plant’s construction is well-advanced, with Phase I operations expected to commence in 2024.
This initiative is a timely response to India’s growing demand for copper and aligns with Adani’s commitment to the energy transition. The plant’s sustainable design, zero liquid discharge, and exploration of green power underscore Adani’s dedication to environmental, social, and governance (ESG) priorities.
As India moves forward with its new exploration and auction policy, more copper concentrate assets are expected to come online, contributing to the global demand-supply balance. Adani’s copper plant signals a transformative leap toward self-sufficiency and sustainability in India’s metal production landscape.
The global copper production landscape, currently concentrated in Chile and Peru, is set to witness more players entering the arena. With projections indicating increased demand growth during the global energy transition, India’s entry into copper production signifies a strategic move in shaping the future of the metal industry.