Billionaire Gautam Adani-led group announced the commencement of the first phase of its $1.2 billion copper manufacturing plant in Mundra, Gujarat on Thursday. This milestone marks a leap towards reducing India's reliance on imports and facilitating the nation's transition towards sustainable energy.
Kutch Copper, a subsidiary of Adani Enterprises Ltd, has initiated operations by dispatching the inaugural batch of cathodes to customers. The first phase, expected to produce 0.5 million tonnes of refined copper annually, is already underway, with a full-scale capacity of 1 million tonnes projected by FY29.
India's entry into the league of rapidly expanding copper producers, alongside nations like China, highlights the metal's pivotal role in transitioning away from fossil fuels. Copper is indispensable for key technologies driving this transition, including electric vehicles, charging infrastructure, solar photovoltaics, wind power, and batteries.
Upon completion of the second phase, Kutch Copper aims to become the world's largest single-location custom smelter, adhering to rigorous ESG (Environmental, Social, and Governance) standards while embracing cutting-edge technology and digitalization. This endeavor is expected to generate 2,000 direct jobs and 5,000 indirect employment opportunities.
Gautam Adani, Chairman of the Adani Group, emphasized the company's commitment to propelling India towards a sustainable and self-reliant future. He highlighted the pivotal role of the domestic copper industry in achieving the nation's carbon neutrality goal by 2070.
Copper, as the third most utilized industrial metal, experiences escalating demand driven by renewable energy, telecommunications, electric vehicles, and infrastructure development. India's current copper production falls short of meeting this demand, leading to heightened dependence on imports.
Adani Group's copper plant introduces environmentally conscious practices, including low carbon footprint technology, extensive green space allocation, and water conservation measures. The integrated complex will also produce valuable byproducts such as gold, silver, selenium, platinum, and sulphuric acid, contributing to various industries including fertilizers, pharmaceuticals, and water treatment.
The expansion of India's copper production capacity is timely, particularly with Vedanta Ltd's endeavors to reopen a dormant plant in Tamil Nadu and Hindalco Industries Ltd's existing operations.
Globally, copper production remains concentrated, with Chile and Peru dominating 38% of the world's output.
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