The Gautam Adani-led conglomerate unveiled the initiation of the primary phase of what is slated to become the world's largest single-site copper manufacturing facility in Mundra, Gujarat. This significant milestone marks a pivotal step towards reducing India's reliance on copper imports and bolstering its energy transition efforts.
Under the banner of Kutch Copper, a subsidiary of Adani Enterprises Ltd, the inaugural phase of the USD 1.2 billion greenfield copper refinery commenced operations, with the dispatch of the maiden batch of cathodes to clientele, as per an official statement released by the company.
The operational launch of the first phase signifies the beginning of a facility capable of producing 0.5 million tonnes of refined copper annually, with projections aiming for a full-scale capacity of 1 million tonnes by the fiscal year 2029.
India is aligning itself with other leading nations, notably China, in ramping up copper production to support the transition away from conventional energy sources. Copper holds pivotal importance in various technologies crucial for this transition, including electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind energy, and battery storage systems.
Upon completion of the second phase, Kutch Copper anticipates establishing itself as the world's largest single-site custom smelter, emphasizing environmental, social, and governance (ESG) performance standards while leveraging cutting-edge technology and digitalization, the statement highlighted.
The initiative is expected to generate employment opportunities, both directly and indirectly, with approximately 2,000 direct and 5,000 indirect jobs anticipated to be created.
India's current per capita copper consumption stands at an estimated 0.6 kg, significantly lower than the global average of 3.2 kg. However, with the nation's thrust towards clean energy systems and the escalating adoption of electric vehicles, among other applications, domestic copper demand is projected to double by 2030.
Gautam Adani, Chairman of the Adani Group, emphasized the strategic significance of the venture, asserting that it aligns with the conglomerate's commitment to spearhead India towards a sustainable and self-reliant future. He underscored the pivotal role of the domestic copper industry in achieving India's goal of carbon neutrality by 2070, expressing confidence that the modern smelter would establish new benchmarks in copper production through its emphasis on innovative green technology.
Furthermore, Kutch Copper is actively pursuing forward integration strategies, with plans to establish Kutch Copper Tubes Limited to broaden its product portfolio, catering to applications in air conditioning and refrigeration.
Copper, being the third most utilized industrial metal after steel and aluminium, is witnessing a surge in demand propelled by the rapid expansion of renewable energy, telecommunications, electric vehicles, charging infrastructure, and the development of power transmission and distribution networks.
India's domestic copper production has struggled to meet the surging demand, resulting in heightened dependency on imported copper. Import figures have steadily risen over the past five years, reaching a record high of 181,000 tonnes in the fiscal year 2023, while exports dwindled to a record low of 30,000 tonnes during the same period.
The impending copper plant by the Adani Group coincides with Vedanta Ltd's efforts to recommence operations at a long-dormant 400,000-tonne plant in Tuticorin, Tamil Nadu. Hindalco Industries Ltd presently operates the country's largest copper smelter, boasting a capacity of 0.5 million tonnes.
Globally, copper production exhibits greater concentration compared to oil, with Chile and Peru, the top two producers, accounting for 38% of global production.
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