The Adani Group announced today that its new Greenfield copper facility in Mundra, Gujarat, with an investment of $1.1 billion, is set to commence operations in March 2024. This project, known as Kutch Copper, represents the group's inaugural foray into the industry and boasts an annual capacity of 1 million tonnes as a greenfield refinery venture.

Kutch Copper's construction will unfold in two phases, focusing on the production of copper cathodes and rods. Additionally, the facility will yield valuable byproducts such as gold, silver, nickel, and selenium. Notably, the integrated complex will manufacture sulphuric acid, a crucial component in various sectors including fertilisers, detergents, pharmaceuticals, paper and sugar bleaching, and water treatment, among others.

Copper holds vital significance in infrastructure development, electrical equipment manufacturing, power transmission, and the renewable energy sector. As India strives to achieve its net zero emissions target by 2070, the demand for copper is anticipated to surge. However, India faces constraints in its domestic copper reserves and heavily relies on imports, necessitating a robust and efficient logistics system. In this context, Kutch Copper is positioned to play a pivotal role in the industry by enhancing control over the supply chain, thereby reducing dependency on the nation's sole domestic copper source, Hindalco. The facility has the potential to meet up to half of the country's copper demand.

It is noteworthy that copper ranks third in global industrial metal usage, trailing behind steel and aluminium. India's per capita consumption of copper is significantly lower at 0.6 kg, compared to the global average of 3.2 kg. Consequently, Kutch Copper has the potential to reinvigorate India's copper exports. The facility's adoption of modern technologies such as zero liquid discharge and equipment for carbon capture enhances its appeal to global markets that prioritise responsibly sourced raw materials.

Furthermore, the Adani Group's subsidiary, Adani Cements, will utilise Kutch Copper's byproducts by substituting silica and hematite in raw mixes for ordinary Portland cement production. Silver extracted from the facility will be utilised by the Adani Group's solar manufacturing unit, while the forthcoming green hydrogen project will source essential materials such as copper and silver from Kutch Copper. Notably, major acid consumers along the Gujarat coast stand to benefit significantly from the operations of the copper facility.

Source: Business Standard