Adani Group Prepares for Copper Smelter Launch Next Month with Major Ore Contracts
The Adani Group, led by billionaire Gautam Adani, has announced the signing of contracts to procure 1.6 million tons of copper concentrate annually, in preparation for the commencement of operations at its Mundra facility next month. This move is part of the group's strategy to secure resources critical for its upcoming projects and to resume capital expenditure.
Vinay Prakash, CEO of Adani Natural Resources, confirmed to Bloomberg that the first phase of the Mundra facility, which boasts a capacity of 500,000 tons, is scheduled to start operations next month. The facility aims to expand its capacity to 1 million tons by March 2029 to meet the anticipated demands for copper in India towards the end of the decade.
Prakash highlighted that the Mundra plant is designed to be a low-cost producer with higher metal recovery rates, positioning it competitively in the market. The copper concentrate contracts consist of both short and long-term arrangements, underscoring the group's commitment to resource security in critical minerals.
The $1.2 billion Mundra facility, located in Gujarat, is poised to diminish India's dependency on copper imports and bolster the country's energy transition efforts. The plant's full-scale capacity of 1 million tonnes is expected to be achieved by FY29, marking a significant milestone in the Adani Group's journey towards becoming a dominant player in the global copper industry.
Kutch Copper, a subsidiary of Adani Enterprises, is responsible for establishing the greenfield copper refinery project, which achieved financial closure in June 2022 through a syndicated club loan. The Adani Group's ambition is not only to lead the copper business in India but also to establish the world's largest copper smelting complex by 2030.
