Adani starts $1.2 bn copper plant in Gujarat
This will boost India’s metal production, cut import dependence
NEW DELHI: Billionaire Gautam Adani-led group on Thursday announced the start of the first phase of the world’s largest single-location copper manufacturing plant at Mundra in Gujarat, which will help cut India’s dependence on imports and aid energy transition.
Kutch Copper, a subsidiary of group’s flagship firm Adani Enterprises Ltd, “commissioned the first phase’’ of $1.2 billion “greenfield copper refinery by dispatching the maiden batch of cathodes to customers”, it said.
The first phase of the facility that will produce 0.5 million tonnes a year of refined copper has started operations and full-scale 1 million tonnes capacity is expected by FY29 (March 2029).
India joins China and other nations that are rapidly expanding production of copper, a metal crucial for transition away from fossil fuels. Technologies critical to the energy transition like electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind and batteries, all require copper.
“On completion of the second phase, Kutch Copper, with 1 million tonnes per annum, will be the world’s largest single-location custom smelter, benchmarking ESG performance standards while leveraging state-of-the-art technology and digitalisation,’’ the statement said. It will create 2,000 direct and 5,000 indirect employment opportunities. India’s per capita copper consumption is estimated around 0.6 kg compared to the global average of 3.2 kg. India’s drive towards clean energy systems, increasing penetration of electric vehicles and a host of associated applications are expected to double the domestic copper demand by 2030.
The Adani Group is investing heavily in energy transition, in which copper will play a vital role. It is expanding into adjacent areas of its current capabilities, which makes the copper business a strategic fit. “With Kutch Copper commencing operations, the Adani portfolio of companies is not only entering the metals sector but also driving India’s leap towards a sustainable and aatmanirbhar (self-reliant) future,’’ said Gautam Adani, chairman, Adani Group. “Our speed of execution in this ambitious, super-sized project underscores our commitment to take India to the forefront of the global copper sector.’’
He said the domestic copper industry will play a crucial role in achieving the nation’s goal of carbon neutrality by 2070.
Kutch Copper is working towards establishing Kutch Copper Tubes Limited as part of its forward integration strategy to add copper tubes to its portfolio, the statement said, adding the tubes will cater to applications in air conditioning and refrigeration.
Copper is the third most used industrial metal after steel and aluminium, and its demand is rising on the back of fast-growing renewable energy, telecom, electric vehicles, charging infrastructure, and the development of power transmission and distribution networks.