Adani Group secures ore for Mundra copper smelter that will start operations next month: Report

Billionaire Gautam Adani-led Adani Group has signed contracts to buy 1.6 million tons a year of copper concentrate for the Mundra facility that is set to start operations next month.

According to a report in Bloomberg, the facility’s – world’s largest single-location smelter for industrial metal – first 500,000 tons of capacity will be started next month, confirmed Adani Natural Resources CEO Vinay Prakash. That will eventually be expanded to 1 million tons by March 2029 in order to meet the projected demands for Indian copper by the end of the decade.

As per the report, the conglomerate is now seeking resource security in critical minerals and resuming capital expenditure. Prakash told the news site that the Mundra plant will be a low-cost producer with higher metal recovery that will enable them to remain competitive in the market.

The concentrate deals are a mix of short and long-term arrangements, he said.

The $1.2 billion Mundra facility located in Gujarat is expected to reduce India’s reliance on imports and support energy transition. The plant is projected to achieve a full-scale capacity of 1 million tonnes by FY29.

Kutch Copper Ltd, an Adani Enterprises Ltd subsidiary, is establishing a greenfield copper refinery project for the production of refined copper. The first phase achieved financial closure in June 2022 through a syndicated club loan.