Adani commences production in the 1.2 billion USD copper manufacturing plant

Billionaire Gautam Adani-led group 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”, the company said in a statement.

The first phase of the facility that will produce 0.5 million tonnes a year of refined copper has started operations. The plant is expected to achieve full-scale 1 million tonne capacity 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 such as 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 tonne 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.

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 of the 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. “When (fully) commissioned, our modern smelter will set new benchmarks in copper production, with an enhanced thrust on innovative green technology.” 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.

Kutch Copper will produce copper cathodes and rods as well as valuable byproducts such as gold, silver, selenium and platinum. Additionally, the integrated complex will produce sulphuric acid, which is a key raw material for manufacturing phosphatic fertilizers, detergents, pharmaceuticals, speciality chemicals, paper and sugar bleaching, and water treatment. India imports roughly two million tonnes of sulphuric acid.

The plant will produce 500,000 tonnes of refined copper per annum in Phase I with byproducts — nearly 25 tonnes of gold, 250 tonnes of silver, 1.5 million tonnes of sulphuric acid, and 250,000 tonnes of phosphoric acid. The Phase II expansion will increase the refined copper capacity up to 1 million tonnes per annum, sources said.

Adani’s copper plant comes at a time when Vedanta Ltd is seeking to reopen a long-shuttered 400,000 tonnes plant at Tuticorin in Tamil Nadu. The country’s biggest copper smelter is currently operated by Hindalco Industries Ltd, which also has a capacity of 0.5 million tonnes.