Adani's $1.2 Billion Copper Plant Set to Enhance National Metal Production

The Gautam Adani-led Adani Group is constructing a single-location copper manufacturing plant in Mundra, Gujarat, with the aim of reducing India's reliance on copper imports and contributing to the country's energy transition. The $1.2-billion facility is scheduled to commence operations for the first phase by the end of March, and the full-scale production capacity of 1 million tonnes is expected to be achieved by the fiscal year 2029.

This development positions India alongside other nations, including China, in the rapid expansion of copper production—a crucial metal for various technologies essential to the global transition away from fossil fuels. Applications such as electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind power, and batteries all rely on copper.

Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), is spearheading the greenfield copper refinery project. The facility aims to produce refined copper with an annual capacity of 1 million tonnes in two phases. For the first phase, with a capacity of 0.5 million tonnes per annum, KCL secured financial closure through a syndicated club loan in June 2022.

One source revealed that Adani aspires 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 ultimate goal is to establish the world's largest copper smelting complex by 2030.

With India's per capita copper consumption currently estimated at around 0.6 kg, significantly lower than the global average of 3.2 kg, the Adani Group anticipates a doubling of domestic copper demand by 2030. The substantial investment in the copper business aligns with the Adani Group's commitment to energy transition, recognizing the pivotal role copper plays in the evolving landscape of clean energy systems, electric mobility, and associated applications.

HBL