Adani Group launched the first phase of the world’s largest copper manufacturing plant in Mundra, Gujarat, aiming to reduce import reliance and aid energy transition.
Kutch Copper, a subsidiary of Adani Enterprises Ltd, initiated the first phase of a $1.2 billion greenfield copper refinery by dispatching the inaugural batch of cathodes to customers, stated the company.
The initial phase of the facility, set to produce 0.5 million tonnes yearly of refined copper, has commenced operations. A full-scale capacity of 1 million tonnes is projected by FY29.
India joins China and other nations in rapidly expanding copper production, crucial for transitioning away from fossil fuels. Copper is vital for EVs, charging infrastructure, solar PV, wind, and batteries.
The statement highlights Kutch Copper’s plan to become the world’s largest single-location custom smelter, producing 1 million tonnes per annum, while prioritizing ESG standards, technology, and digitalization.
It will create 2,000 direct and 5,000 indirect employment opportunities.
India’s per capita copper consumption stands at approximately 0.6 kg, significantly lower than the global average of 3.2 kg. With a drive towards clean energy and increasing EV adoption, domestic copper demand is expected to double 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 ventures into the metals sector, catalyzing India’s stride towards a sustainable and self-reliant future,” stated Gautam Adani, Chairman of the Adani Group. “Our swift execution underscores our commitment to elevate India in the global copper sector.”
Gautam Adani emphasized the domestic copper industry’s role in India’s aim for carbon neutrality by 2070. He highlighted that their modern smelter will set new standards with a focus on innovative green technology.
Kutch Copper aims to establish Kutch Copper Tubes Limited for forward integration, expanding into copper tube production for air conditioning and refrigeration applications.
Copper, ranking third among industrial metals after steel and aluminum, experiences increasing demand due to rapid growth in renewable energy, telecom, electric vehicles, charging infrastructure, and power transmission networks.
India’s copper production has been unable to meet this demand, and domestic supply disruptions have led to a higher dependency on imported copper.
Imports of copper have surged over the past five years, with India importing a record 181,000 tonnes in FY23. Meanwhile, exports hit a record low of 30,000 tonnes, even lower than during the Covid pandemic.
In FY23, India consumed 750,000 tonnes of copper, up from 612,000 tonnes in FY22. By 2027, demand is projected to reach 1.7 million tonnes due to green energy demand.
Global demand for copper from solar photovoltaic (PV) installations alone is estimated to double to 2.25 million tonnes in the current decade. Adani Group, which is rapidly growing its renewable portfolio, will be a significant consumer of the red metal.
The technology used by Kutch Copper is designed for minimal carbon footprint. One-third of the plant area is green belt space, with 15% of capital allocated to environmental protection. The plant implements a zero-liquid discharge model, uses desalinated water, and recycles treated wastewater within processes.”
Adani Group’s foray into copper manufacturing is a natural extension of its trading, mining, logistics, infrastructure, and manufacturing businesses. Kutch Copper will produce copper cathodes and rods as well as valuable byproducts such as gold, silver, selenium and platinum.
Furthermore, the integrated complex will produce sulphuric acid, crucial for manufacturing phosphatic fertilizers, detergents, pharmaceuticals, specialty chemicals, and various industrial applications. India currently imports approximately two million tonnes of sulphuric acid annually.
In Phase I, the plant will produce 500,000 tonnes of refined copper annually along with byproducts: approximately 25 tonnes of gold, 250 tonnes of silver, 1.5 million tonnes of sulphuric acid, and 250,000 tonnes of phosphoric acid. Phase II will expand refined copper capacity to 1 million tonnes per annum.
Adani’s copper plant arrives as Vedanta Ltd aims to revive a dormant 400,000 tonnes facility in Tuticorin, Tamil Nadu. Currently, Hindalco Industries Ltd operates India’s largest copper smelter with a capacity of 0.5 million tonnes.
Globally, copper production exhibits higher concentration than oil. The top two producers, Chile and Peru, contribute 38% of world production.
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