Adani's Copper-producing Mundra Plants To Start Operations In March 2024

Adani Group’s copper-producing factory in Mundra, Gujarat is set to commence operations in March of 2024. This development is expected to reduce India's reliance on imported copper and support the country's transition towards clean energy. 

Copper plays a vital role in electrification as it is extensively used in various technologies crucial for the energy transition, including electric vehicles, charging infrastructure, solar photovoltaics, wind power, and batteries. 

Kutch Copper (KCL), a subsidiary of Adani Enterprises (AEL) is undertaking a greenfield copper refinery project in two phases, with a total annual refined copper production capacity of one million tonnes. The first phase, with a capacity of 0.5 million tonnes per annum, has secured financial closure through a syndicated club loan and is expected to become operational by the end of the current fiscal year. 

During the company's recent AGM, Adani confirmed that the copper smelter project, along with other ventures like the Navi Mumbai Airport, is progressing as scheduled. The entire debt requirement for Phase-1, amounting to Rs 6,071 crore, has been provided by a consortium of banks, with the equity invested by Adani Enterprises. Necessary approvals are in place to ensure timely execution. 

Due to the increasing demand from renewable energy, telecom, and electric vehicle industries, copper consumption in India is rising, but domestic production is insufficient, leading to a higher dependency on imports. In FY23, India imported a record 1,81,000 tonnes of copper, while exports remained low. It is projected that the demand for copper will continue to rise, especially from the green energy sector. 

The Mundra-based plant's strategic location on the west coast will contribute significantly to the development of green energy infrastructure and support the "Make in India" initiative. It is expected to become a hub for downstream ecosystems of value-added copper products. The location offers advantages such as access to cost-effective and uninterrupted energy supply and logistical infrastructure to meet both domestic and international demands. 

With long-term supply agreements for key raw materials and an integrated value chain advantage, Kutch Copper aims to become one of the most sustainable and cost-effective copper producers globally. In line with the group's ESG priorities, the plant has a sustainable solution-based design with zero liquid discharge and plans to use green power and utilise byproducts for other businesses. 

Apart from copper production, the plant will also yield valuable byproducts like gold, silver, sulphuric acid, and phosphoric acid, which are crucial for various industries, including fertilisers and chemicals. 

Considering the global demand for copper during the energy transition, countries like the US, China, Europe, and India are projected to experience significant growth. By 2035, the US is expected to import a substantial portion of its copper needs.