Page 161 - CW E-Magazine (5-3-2024)

Special Report Special Report

Copper industry in India – Tamil Nadu’s loss of fi rst tranche of 20 critical minerals,
which includes one copper mine,
is Gujarat’s gain located in Odisha (Dudhiasol East Nickel
and Copper Block).
emand for copper has been expected to remain
steadily increasing in India key growth drivers. N.S. VENKATARAMAN Acquisition of copper mines abroad
Dover the years and the trend Director Vedanta has reinstated its own-
is likely to continue. While India was During the fi rst Nandini Consultancy Centre ership and management of Konkola
a net exporter of copper a few years eight months of the Chennai Copper Mines, ending a row over owner-
back, it has now become a net importer current fi scal year Email: nsvenkatchennai@gmail.com ship of the assets with the Zambian
of copper, due to the forced closure of (ending November Over 50% of India’s smelting capa- government that started in 2019. The
the Sterlite Copper unit in Tamil Nadu. 2023), copper cathode demand reached city has remained shut since 2018. The mine assets have reserves and resour-
598,000-tonne or 81.2% of the total closure of the Sterlite copper smelter in ces of 16-mt of contained copper with a
However, it is gratifying to note that demand from the previous fi nancial year. Tuticorin in Tamil Nadu signifi cantly copper grade of 2.3z%, as compared to
the Adani group has now announced Cathode imports surged by 174% year- contributed to the severe shortfall in the the global average of 0.4%.
plans for the commissioning of a cop- on-year during this period. Imports of domestic production of copper.
per smelter project in Gujarat. This copper scrap and wire rods also wit- Other Indian companies are look-
project will establish India’s place in nessed signifi cant increases of 56% and The Sterlite copper unit in Tamil ing to acquire exploration and mining
the global market. 13%, respectively. Nadu was shut down due to counter- rights overseas, but nothing concrete
productive and what appears to be given a proactive verdict, one cannot concentrates for use in the project. The has materialized as yet.
Demand trend for copper in India These trends highlight the fact that motivated protests against the project. be sure at this stage whether the unit capacity of the project will be expanded
India’s copper demand witnessed a India’s copper demand is likely to wit- would reopen, due to the priorities and to 1-mtpa by March 2029 to cater to a Prognosis
16% growth in FY23. And in FY24, the ness impressive growth in the coming The copper production capacity thought process of the present political forecast doubling of Indian copper Birla Copper in Gujarat and Hindustan
trends indicate a possible double-digit years. of the plant amounted to 1,200-tpd leadership of the State. demand by the end of the decade. Copper in Rajasthan are the presently
growth too, outstripping global growth, (tonnes per day), and about 50% of the operating copper projects in India.
which is estimated at around 3% per However, per capita copper usage output was used domestically. Thou- Adani’s copper smelter project Copper mines project
annum. in India still remains low at 1-kg, com- sands of employees are in dire straits in Gujarat The Ministry of Mines, Government Setting up of the copper smelter
pared to the global average of 3.2-kg. due the closure of the plant. There is The upcoming Adani smelter is of India, issued two composite licenses project by Adani group in Gujarat is
Infrastructure and electric vehicles Hence, there is urgent need to increase degeneration of equipment taking place expected to begin production at its in 2023 – one in Madhya Pradesh timely and much needed. The country
(EVs) are among the key sectors driving domestic production of copper. due to closure for several months, and 500,000-tpa, $1.2-bn facility in Mundra (Shitalpani Copper Block) and one in should welcome this project, which
consumption of copper in India, apart even in the event of reopening of the in 2024. The company has signed Maharashtra (Minzhari Copper Block). appears to have been set up with a sense
from consumer durables. The Indian India’s copper production unit, massive investments would be contracts to buy 1.6-mtpa of copper The Ministry has announced auction of urgency, in quick time.
government’s focus on infrastructure Domestic copper production has not needed for overhauling of equipment.
development, clean energy transition. been able to keep pace with the rising Though Sterlite Copper has consis- Chemical Weekly | Import-Export Data Market Surveys
and growth in consumer spending are demand. tently claimed that it has not violated
any environmental norms and several Directories Business Forums | Expositions
studies have confi rmed this, it seems to
have become a victim of Tamil Nadu The only organisation in India catering exclusively to the needs of the entire chemical industry
politics.

At present, the matter is before the Contact:
Supreme Court, which has proposed SEVAK PUBLICATIONS PVT. LTD.
forming a “non-partisan” committee
to objectively evaluate environmental 602-B, Godrej Coliseum, K.J. Somaiya Hospital Road,
concerns and to suggest additional con- Behind Everard Nagar, Sion (E),
ditions, if any, for re-opening the plant.
The Bench said the committee could Mumbai 400 022.
submit its report to the apex court in a Phone: +91-22-24044471 / 72
month.
Email: admin@chemicalweekly.com
Though the Supreme Court has

160 Chemical Weekly March 5, 2024 Chemical Weekly March 5, 2024 161

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