Hindustan Copper Expands Production Capacity

India's sole copper miner, Hindustan Copper, is on track to triple its production capacity from 4 million tonne per annum (MTPA) to 12.2 MTPA by 2031.

The company is investing Rs 2,000 crore in capital expenditure to expand production at its Madhya Pradesh and Rajasthan mines, and reopen three mines in Jharkhand that were previously closed due to technical and economic reasons. The investment aims to increase productivity at the Madhya Pradesh mine by digging deeper and implementing a copper concentrator plant.

Copper Demand on the Rise

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India imports over 95% of its copper requirements, with the country importing copper worth over $10 billion in 2024. The demand for copper is driven by growth in electric vehicles, renewable energy, data centres, and infrastructure development. The government is under pressure to scale up copper production to reduce import dependence for copper ores.

Partnership with CODELCO

Hindustan Copper has partnered with Corporación Nacional del Cobre de Chile (CODELCO), the world's largest copper producer, to expand its technical capabilities and increase efficiencies. The partnership aims to develop assets together and help Hindustan Copper grow its production capacity significantly.

Revenue from Rakha Mines

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The company has signed an agreement with JSW Group to work as a mine developer and operator (MDO) for the Rakha Mines in Jharkhand. Hindustan Copper is expected to earn Rs 2,400 crore over a 20-year period from the agreement.

Global Copper Prices

Global copper prices have reached record highs, hovering at over $13,000 per tonne in January and February at the London Metal Exchange. The company's stock has increased by over 120% in the past year due to the demand picture.

Critical Minerals Venture

Hindustan Copper holds a 30% stake in Khanij Bidesh Ltd (KABIL), a critical minerals venture formed by the Union government. The company is in talks to increase its stake in KABIL, which is exploring critical mineral assets in countries such as Argentina and Australia.