Kutch Copper, a novel copper refinery with plans to achieve an annual refined copper output of 1 million tonnes, will undergo construction in two stages. In June 2022, the Adani Enterprises subsidiary successfully secured financial backing for Phase 1, which is designed to produce 0.5 million tonnes per year, using a syndicated club loan. One source mentioned, "Adani aspires to establish itself as a global leader in the copper industry, capitalizing on the Adani Group's robust presence in resource trading, logistics, renewable energy, and infrastructure". The report also stated their ambitious goal of becoming the world's largest copper smelting complex by 2030.
The per capita copper consumption in India stands at around 0.6 kg, a figure lower than the global average of 3.2 kg. The push for clean energy solutions, the growing adoption of electric vehicles, and related applications are anticipated to double the domestic demand for copper by 2030. The Adani Group, deeply invested in the energy transition, sees copper as a strategic fit, given its expanding ventures into areas aligned with its existing capabilities.
Over the past five years, India has witnessed a consistent surge in imports due to domestic production struggling to meet the rising demand. In the fiscal year 2022-2023, the country achieved a record-high of importing 181,000 tonnes of copper, while exports dwindled to an unprecedented low of 30,000 tonnes, even surpassing the levels observed during the COVID-19 pandemic. Estimates suggest that India consumed 750,000 tonnes of copper in FY23 (compared to 612 KT in FY22), with expectations of reaching 1.7 million tonnes by 2027, primarily driven by substantial demand from the green energy sector. The report highlights the projection that Kutch Copper will produce copper cathodes and rods, along with valuable byproducts like gold, silver, selenium, and platinum.
The integrated complex is set to generate sulphuric acid, a crucial raw material used in the production of phosphatic fertilizers, detergents, pharmaceuticals, specialty chemicals, paper and sugar bleaching, and water treatment. Currently importing around two million tonnes of sulphuric acid, India aims to address this with the facility's initial phase manufacturing 500,000 tonnes of refined copper annually, accompanied by byproducts such as 25 tonnes of gold, 250 tonnes of silver, 1.5 million tonnes of sulphuric acid, and 250,000 tonnes of phosphoric acid. The subsequent Phase II expansion is expected to elevate the refined copper capacity to 1 million tonnes per annum. The report emphasizes that Kutch Copper aims to be an efficient and environmentally friendly copper smelter in India, with a commitment to lower greenhouse gas emissions, aligning with Adani's goal to increase the share of renewables in the overall energy mix as part of their 'green copper' initiative.