Adani's Mega Copper Plant in India to Exacerbate Global Ore Supply Tightness

Billionaire Gautam Adani is set to launch a significant copper plant in India with an initial annual capacity of 500,000 tons, expected to boost the country's copper output by 80%. This development is crucial as global ore shortages arise from the closure of a major mine in Panama and cutbacks by Anglo American Plc. Aligned with India's ambitious expansion in copper production, Adani's plant could lead to a surge in copper concentrate imports to 2 million tons in 2024, exacerbating the global supply shortage.

India, currently importing over 90% of its ore, aims to enhance self-sufficiency, and Adani's venture may consume 1 million tons of overseas copper concentrate in its first year. Legal proceedings for the reopening of a Vedanta Ltd. plant and Hindalco Industries Ltd.'s ongoing operations further shape the copper market dynamics.

Analysts predict Adani's smelter could elevate India's refined copper production to 800,000 tons by 2025, meeting robust domestic demand driven by infrastructure spending and a shift to renewable energy. The global copper market anticipates the impact of heightened demand from India, posing challenges in securing adequate ore supply worldwide. 

Source: The Economic Times