Image credit :- NDTV.com
Adani Enterprises, under the leadership of Gautam Adani, is all set to commence operations at its copper-producing factory in Mundra, Gujarat, by March 2024. The ambitious greenfield copper refinery project is being developed at a substantial cost of Rs. 8,783 crore. It is designed to have an impressive annual production capacity of 1 million tons (MT) of refined copper.
In addition to refined copper, the plant will also yield valuable byproducts, including 25 tonnes per annum of gold and 250 tonnes of silver.
The factory operated by “Kutch Copper Ltd”, a subsidiary of Adani Group, will be undertaken in two phases.
According to the sources, for the first phase of the project, a production capacity of 0.5 million tonnes (MT) of refined copper is estimated. For this, Kutch Copper Ltd (KCL) has secured funding through a syndicated club loan. It is anticipated that this initial phase will become operational by the end of the current fiscal year.
Earlier this year, the 8,783 crore greenfield project successfully secured complete debt funding through a consortium of banks led by SBI. The Parent company, Adani Group, has provided the necessary equity investment.
Moreover, the project has obtained all the crucial approvals, ensuring its smooth and timely execution.
Revitalizing Indian Industrial Copper Metal Market
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With Its extensive utilization in industries such as renewable energy, telecom, and electric vehicles, copper ranks as the “third most” utilized industrial metal, closely following steel and aluminum. The demand for copper continues to surge due to rapid growth in these sectors.
Unfortunately, India’s domestic copper production has struggled to keep up with this increasing demand, resulting in a heightened reliance on imported copper.
During the fiscal year 2022-2023, India Witnessed a remarkable surge in copper imports, reaching a record-breaking 181,000 tons, while exports experienced a sharp decline, hitting an all-time low of 30,000 tons. The demand for copper is further expected to escalate in the coming years, driven by the increasing needs of the green energy industry. The projections indicate a rise of 1.7 million tons by the end of 2027.
This copper plant will aim to fulfill India’s Copper production requirements, diminish the nation’s reliance on imports, and facilitate the ongoing energy transition. By establishing this facility, the Mundra Special Economic Zone has the opportunity to become a central hub for various downstream Industries that produce value-added copper products. The plant will play a crucial part in the green energy infrastructure development, and encourage ‘Make in India‘.( also read :- An “Atmanirbhar Bharat” in Defense is the Objective and Defense Attaches can strengthen India’s ties with Friendly Nations: Rajnath Singh)
Moreover, the strategic location of the Mundra plant, along the west coast offers advantages such as access to cost-effective and continuous energy supply, as well as well-developed logical infrastructure to cater to both domestic and international demands.
Currently, Kutch Copper Limited (KCL ) is actively involved in long-term supply agreements for copper concentrate. By leveraging its strategic location and integrated value chain, Kutch Copper is well-positioned to emerge as one of the most sustainable and cost-efficient copper producers globally.
