Vedanta Chairman Calls for Increased Private Sector Role in India’s Gold and Copper Industries

Vedanta Chairman Anil Agarwal highlighted India's heavy reliance on gold and copper imports and emphasized the need for increased private sector participation to unlock the potential of these sectors. Despite India's substantial resources, the country remains heavily dependent on imports for both metals.

"In today’s times, the importance of gold and copper has become significant," Agarwal stated in a post on X. "In times of global uncertainty, the price of gold goes up as people buy more of the precious metal. Copper demand is being fuelled by the technologies of the energy transition. Prices of both gold and copper are at, or near, record highs."

Global market uncertainties drive the demand for gold as a safe-haven asset, pushing its price higher. Concurrently, the transition towards sustainable energy technologies has intensified the demand for copper, essential for various applications in renewable energy infrastructure.

Agarwal noted that despite having significant resources, India produces only a fraction of its gold and copper needs. "India consumes around 900 tonnes of gold each year but produces only 1 tonne domestically. Our imports of gold every year are worth $45 billion or Rs 3.4 lakh crore. In copper, we import 95 per cent of our requirement worth over $3 billion a year or Rs 24,000 crore."

Highlighting stagnant production levels in public sector enterprises like Hatti Gold Mines, Bharat Gold Mines, and Hindustan Copper Limited, Agarwal pointed out the potential for increased output with additional investment and the latest technology.

He advocated for private sector participation as a viable solution, recognizing the risks and government spending priorities. "Inviting private sector participation is the best way out. If the Government of India and Karnataka divest their shares, private companies are capable of acquiring them," he asserted.

Agarwal envisions significant economic benefits from such a policy shift, including substantial government revenue from taxes and royalties, import substitution, industry expansion, and the creation of thousands of jobs. "This is the need of the hour," he tweeted.