Copper could be considered a critical mineral for India for several reasons:
1. Economic
Importance: Copper is a vital component of the global economy and is widely
used in various industries, including construction, electrical and electronics,
transportation, and telecommunications. In India, the demand for copper is
driven by infrastructure development, urbanization, and industrialization.
2. Infrastructure
Development: As India continues to invest in infrastructure development, the
demand for copper in construction, power generation, and transportation sectors
increases. Copper is essential for electrical wiring, plumbing, and various
building components.
3. Electrical
and Electronics Industry: The growth of the electrical and electronics industry
is a major driver of copper demand. Copper is a key material for electrical
wiring, transformers, motors, and other electronic components. With the
increasing use of electronic devices and renewable energy technologies, the
demand for copper is expected to rise.
4. Power
Generation and Transmission: Copper is crucial for the power sector, especially
in power generation, transmission, and distribution. It is widely used in power
cables, transformers, and other electrical equipment. As India focuses on
expanding its power infrastructure, the demand for copper is likely to grow.
5. Automotive
Industry: Copper is used in various components of automobiles, including
wiring, radiators, and connectors. With the growth of the automotive sector in
India, driven by increasing urbanization and disposable income, the demand for
copper in this industry is expected to rise.
6. Renewable
Energy: Copper is a key material in renewable energy technologies such as solar
panels, wind turbines, and electric vehicles. As India seeks to increase its
renewable energy capacity, the demand for copper in these technologies will
likely escalate.
7. Supply
Chain Security: Ensuring a stable and secure supply of copper is essential for
India's industrial growth. Dependence on imports without a reliable domestic
source could pose challenges, making copper a critical mineral for ensuring the
security of the supply chain.
8. Global
Trends: Internationally, copper is recognized as a critical mineral due to its
importance in various industries and the transition to a low-carbon economy. As
India aligns itself with its global sustainability goals, the demand for copper in
environmentally friendly technologies will likely increase.
Ensuring a steady and secure supply of copper is crucial for India's economic growth, industrial development, and the achievement of its sustainability and energy goals.
Copper and lndia
Hindustan Copper
Limited (HCL) was the sole producer of refined copper until 1995 and the focus
was on vertical integration so that the entire quantity of ore produced in its
mines was converted into copper cathode and ultimately, wire rod. After
liberalization of the economy, the copper segment of industry has transformed
significantly. Currently, three major players dominate the Indian copper
industry. Hindustan Copper Limited (HCL) in the Public Sector, M/s Hindalco
Industries Ltd and M/s Vedanta in the private sector, having current total
installed refined copper capacity in the country 10.28 lakh tonnes. The
capacity wise details are furnished below: -
|
Sl# |
Company |
Refined Copper Production Capacity (Tonne) |
Type of Copper Producer |
Location |
Actual Production (Tonne) |
||||
|
2017-18 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
|||||
|
1 |
HCL |
68,500 |
CPSE (integrated producer) |
Ghatsila, Jharkhand & Jhagadia, Gujarat |
25,949 |
16,215 |
5,340 |
Nil |
620.7* |
|
2 |
Birla |
5,00,000 |
Private (Port based custom smelter) |
Dahej, Gujarat |
4,13,806 |
3,47,000 |
3,25,568 |
2,62,203 |
3,58,890 |
|
3 |
Sterlite |
4,60,000 |
Private (Port based custom smelter) |
Tuticorin, Tamilnadu & Silvasa, Daman
and Diu |
4,03,206 |
90,000 |
77,490 |
1,01,435 |
1,25,104 |
|
Total |
10,28,500 |
|
|
8,42,961 |
4,53,215 |
4,08,398 |
3,63,638 |
484615 |
|
Source:
Ministry of Mines, Government of India website
HCL is the only
vertically integrated copper producer in the country, while M/s Hindalco (plant
at Dahej in Gujarat) and M/s Sterlite Industries (plant at Tuticorin in Tamil
Nadu which is closed since May 2018) have setup port-based custom smelting and
refining plants. The total annual consumption of refined copper within the
country is around 6.6 lakh tonnes during 2020-21.
HCL is the only producer of copper ore in the country. Copper ore production of HCL during the last few years is in the range of 4.0 million tonne per annum (Mtpa) which is equivalent to 4.5% of the country’s requirement in terms of copper metal. HCL Owns all the operating mining leases in the country, mine expansion is under way, significant mining capacity expansion to be achieved from 4.0 Mtpa to 12.2 Mtpa in Phase I by FY 2028-29 and thereafter from 12.2 Mtpa to 20.2 Mtpa in Phase II. India is not self-sufficient on Copper minerals because of its low reserve/resource base. Custom Smelters in Pvt sector, imports copper concentrate as raw material to convert it into Refined copper. Currently the refined copper produced in India meets the Country’s demand to a certain extent and the balance requirement is fulfilled by import.
Domestic level consumption
· The total consumption of refined copper in the
country in 2020 was around 6.60 lakh tonnes.
· Electrical/Electronic Industry is by far the
largest consumer of copper, where it is used in the form of cables, winding
wires as it is the best non-precious metal conductor of electricity as it
encounters much less resistance and is safe for electrical distribution system
from high voltage transmission cables to micro-circuits.
· Copper demand in electrical segment is growing
due to demand in infra sector as a result of affordable housing schemes, rural
electrification and more urbanization.
· Copper demand in India is expected to grow due
to the increased thrust of Govt. of India towards "Make in India" and
"Smart City" programme, Atmanirbhar Bharat in Defense, 100 GW target
for Renewable Energy by 2022, PLI schemes for Consumer electronics industry,
Accelerated growth for Electric Vehicles and which will drive the demand of
copper in the country.
· Copper is essential to EV technology and its
supporting infrastructure, and the increase in the electric vehicles in the
market will have a substantial impact on copper demand. The projected demand
for copper due to electric vehicles is expected to increase by 1.7 million
tonnes by 2027.
· The per capita copper consumption in India is
expected to increase from the current level of 0.6 Kg to 1 kg in coming years.
The average per capita copper consumption in the world is 3.2 kg. If India’s
per capita copper consumption moves towards per capita copper consumption
levels in the rest of the world, India’s copper market has the potential for
significant growth.
(Source- IBM -
Indian Minerals Yearbook 2019 & ICSG Factbook 2021)
