In a significant stride toward bolstering India’s metal production, the Gautam Adani-led group is making headway with the construction of the world’s largest single-location copper manufacturing plant at Mundra in Gujarat. The $1.2-billion facility, spearheaded by Kutch Copper Ltd (a subsidiary of Adani Enterprises Ltd), aims to kickstart operations in the first phase by March-end, with a full-scale 1 million tonnes capacity anticipated by March 2029.
The strategic move positions India alongside global leaders like China, acknowledging the pivotal role of copper in technologies crucial for the energy transition, including electric vehicles, charging infrastructure, solar photovoltaics, wind power, and batteries.
Copper’s Role in Energy Transition and India’s Growing Demand:
Copper stands as the third most utilized industrial metal globally, with surging demand driven by renewable energy, telecom, and electric vehicle industries. While India’s copper production has struggled to meet burgeoning demand, the Adani Group’s $1.2 billion investment aims to address this shortfall and reduce dependency on imported copper.
Key Highlights:
- Phase-wise Development: The project involves the establishment of a greenfield copper refinery with 1 million tonnes per annum capacity in two phases. Phase I, with a capacity of 0.5 million tonnes per annum, is set to begin operations by March 2029.
- Global Leadership Aspiration: Adani envisions becoming a global leader in the copper business by 2030, capitalizing on the group’s expertise in resource trading, logistics, renewable power, and infrastructure.
- India’s Rising Copper Demand: With India’s per capita copper consumption at 0.6 kg compared to the global average of 3.2 kg, the Adani Group sees immense growth potential. The transition towards clean energy systems and increasing penetration of electric vehicles is expected to double domestic copper demand by 2030.
- Byproducts and Sustainability: The integrated copper complex will produce valuable byproducts such as gold, silver, selenium, platinum, sulphuric acid, and phosphoric acid. Adani prioritizes sustainability, aiming to be a proponent of ‘green copper’ with lower greenhouse gas emissions and zero liquid discharge.
Future Expansion and Impact on Global Prices:
The Adani Group’s foray into copper manufacturing is seen as a natural extension of its diverse business portfolio. The upcoming plant, expected to be operational in 2024, may significantly impact India’s copper production landscape and contribute to global supply dynamics.
