Kutch Copper in Talks with BHP for Major Copper Concentrate Supply Deal
Gautam Adani-controlled Kutch Copper is reportedly in discussions with Australian mining giant BHP to secure a substantial copper concentrate supply. According to a report by The Economic Times, the potential agreement could involve up to 1.6 million tonnes per annum (mtpa) of copper concentrate.
The deal is projected to be worth approximately Rs 30,000 crore ($3.6 billion) per year based on current market rates, although the final value may fluctuate due to copper price volatility. Both companies are said to be finalizing the details of the supply agreement.
As of November, copper prices on the London Metal Exchange (LME) are around \$9,474 per tonne. Market forecasts predict an increase, with prices expected to rise to \$9,715 per tonne within the next three months and potentially surpass $10,000 per tonne by December 2025, according to the report.
Kutch Copper, a subsidiary of Adani Enterprises, commissioned the first unit of its copper refinery project in Mundra earlier this year, further solidifying its position in the industry. Adani Enterprises is investing approximately $1.2 billion to establish a copper smelter with an initial capacity of 0.5 mtpa. A second phase is planned to double the capacity to 1 mtpa, which would make Kutch Copper the world’s largest custom copper smelter at a single location upon completion.
BHP sources copper from key locations such as Chile, Australia, Argentina, and Arizona. It is also the largest supplier of copper concentrates to India, where domestic demand far exceeds production capacity. Indian companies typically import copper concentrate with around 25% copper content, which is then processed in local smelters.
The pricing for copper supply deals is linked to the LME, with additional factors such as currency hedging, freight, treatment and refining charges, and other operational costs also influencing the final negotiations.
In India, Hindustan Copper Limited is the only public sector company producing copper ore, contributing to a total domestic production of around 4.0 mtpa. This accounts for just 4.5% of the country’s overall copper concentrate needs, highlighting a significant reliance on imports.
India's per capita copper consumption is expected to grow from 0.6 kg to 1 kg, according to estimates from the Union Mines Ministry. In comparison, the global average per capita consumption stands at 3.2 kg, underscoring India’s increasing demand for copper in the years to come.
