Hindustan Copper plans to sell copper concentrate sourced from Chile to Hindalco, Adani, sources say
NEW DELHI: State-run Hindustan Copper plans to sell copper concentrate produced by mines it is acquiring from Chile’s Codelco to Hindalco and Adani, aiming to meet India’s growing appetite for the red metal, two sources familiar with the matter said. It is also in talks to form a joint venture with state-run Codelco to mine and sell copper, three sources said, declining to be identified as the…
The state-owned Hindustan Copper is considering selling copper concentrate sourced from Chile to major players Hindalco and Adani, according to sources familiar with the matter. The aim is to cater to India's escalating demand for the red metal, which is projected to increase as much as 91% to 97% of India's copper concentrate imports by 2047, the government has stated.
In addition to potential sales, Hindustan Copper is in talks to establish a joint venture with Codelco, Chile's state-run copper mining company. Sources declined to disclose the identities of the parties involved due to the sensitive nature of the discussions. Hindustan Copper, Coal India and NTPC Mining are currently exploring four copper mining blocks from Codelco, as reported by India's mines secretary in April.
A preliminary agreement was signed between Hindustan Copper and Codelco late last year, exploring possible synergies in exploration and mining. In May, a non-disclosure agreement was signed between the two companies, and a deal advisor was appointed. Hindustan Copper has previously dismissed claims of talks about a joint venture.
The report also mentions that China's share of available LME (London Metal Exchange) copper stocks decreased to 42% in July. Codelco, NTPC Mining and Coal India did not immediately respond to requests for comment from Reuters.
India, the world's second-largest importer of refined copper, may have to rely on imports to meet its copper concentrate needs until 2047, as per government projections. Hindalco, owned by the Aditya Birla Group, is one of India's largest producers of aluminium and copper. Adani Group, led by industrialist Mukesh Ambani, operates Kutch Copper, a $1.2 billion smelter in Gujarat, which the company claims is the world's largest single-site facility of its kind.
Sources indicate that due diligence for the proposed joint venture is ongoing, and Hindustan Copper is open to partnering with entities such as Coal India and NTPC Mining. Early this year, a technical team representing Hindustan Copper, along with executives from NTPC Mining and Coal India, visited Chile, with the intention of continuing the discussions. However, they emphasized that it would take at least a decade before mining could commence and concentrate be produced.
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