India may turn net copper exporter in FY26 as Adani unit goes on stream

From being a net importer of copper, India could become a net exporter of the red metal, probably from the next fiscal, with the ₹8,373crore Kutch Copper Ltd (KCL), a unit of Adani Enterprises Ltd, set to become operational by the end of the current fiscal in Gujarat.

India turned a net importer in 201718 with shipments into the country topping 2.75 lakh tonnes last fiscal.

Coal and Mines Minister Pralhad Joshi told Parliament in December that ₹27,131 crore was spent on the import of the red metal last fiscal compared with ₹21,985 in 202122.

KCL, to be set up in Mundra Special Economic Zone, will have 5 lakh tonnes capacity in the first phase and an additional 5 lakh tonnes in the second phase, according to documents seen by businessline.

At the Adani Group’s annual general meeting last year, its Chairman Gautam Adani said the copper smelter is a key project underway and is on schedule.

PRODUCTION TO DOUBLE

If KCL becomes fully operational next fiscal, India’s copper production will nearly double. According to the Ministry of Mines, copper production in the 202223 fiscal was 5.55 lakh tonnes against a capacity of 7.85 lakh tonnes.

Sources said while the country’s copper production capacity will increase by 63 per cent, total production could rise to about 10 lakh tonnes.

Until 201718, the country’s copper production capacity was 10.28 lakh tonnes with Birla’s Hindalco having a five lakh tonnes capacity and Sterlite 4.6 lakh tonnes with Hindustan Copper making up the rest.

LEAVING SURPLUS

However, with the Tamil Nadu government closing Sterlite Copper in 2018 following unrest and protests, the production capacity of the red metal in the country declined from 8.42 lakh tonnes in 201718.

Data from the Ministry of Mine show that copper production during the AprilJanuary period of the current fiscal was 4.65 lakh tonnes. According to the ministry, the size of the Indian copper industry (consumption of refined copper per annum) is around 6.6 lakh tonnes, which as percentage of world copper market is three per cent.

This would mean the country would have some surplus to export.

During the hearing on Vedanta’s plea on resuming the Thoothukudi plant, the Tamil Nadu government argued that KCL “is capable of fulfilling the country’s copper demand” and the Sterlite plant should not be considered a national asset.

The KCL plant will have zero liquid discharge and explore using green power and deploying byproducts for cement and other businesses.

Besides 5 lakh tonnes of refined copper, KCL will annually produce 2.5 lakh tonnes copper rods, 15 lakh tonnes of sulphuric acid, 25 tonnes of gold, 250 tonnes of silver and 150 tonnes of selenium.

CALL.