Context:
Despite the global surge in copper demand, India has witnessed a decline in domestic copper ore production, dropping from 4.13 million tonnes in FY19 to 3.78 million tonnes in FY24, as reported by the Ministry of Mines. This reduction in production has led to a significant increase in copper concentrate imports, which have doubled to Rs 26,000 crore in FY24 from FY19. In response to these challenges, Indian smelters and refiners are proactively seeking to acquire copper assets overseas to meet the growing demand and stabilize supply.
Relevance:
GS I: Geography
Dimensions of the Article:
- Copper Metal and Reserves in India
- Copper Production in India
- Current Overview of Copper Ore Production in India
Copper Metal and Reserves in India:
- Properties of Copper:
- Copper is known for its soft, malleable, and ductile properties along with high thermal and electrical conductivity.
- It naturally occurs in a directly usable metallic form and is a crucial non-ferrous metal with extensive industrial applications in defense, space, railways, telecommunications, and more.
India’s Copper Reserves:
- Global Reserve Share:
- India holds about 2% of the global copper reserves.
- Primary Locations:
- The largest volume of copper ore, about 813 million tonnes, is located in Rajasthan, followed by Jharkhand and Madhya Pradesh. The Khetri Mine in Rajasthan is one of the largest in India.
- State-wise Reserves:
- Significant copper resources are also found in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Meghalaya, Nagaland, and Odisha.
Copper Production in India:
- Production Capacity:
- India’s copper production accounts for 2% of global output, and the country is not self-sufficient in copper ore production.
- Demand and Supply:
- Domestic demand for copper and its alloys is met through local production, recycling of scrap, and imports.
- Import Practices:
- India primarily imports copper concentrates for processing in domestic smelters, which are then used to produce copper anode and subsequently refined into copper cathode. This refined copper is crucial for manufacturing various products like rods, sheets, and wires.
Key Players in the Copper Industry:
- Hindustan Copper Limited (HCL):
- As a Public Sector Undertaking, HCL stands as the only integrated company in India involved in the mining, beneficiation, smelting, refining, and casting of refined copper.
- Private Sector Contributions:
- Major private players like Hindalco Industries Ltd and Vedanta Limited significantly contribute to the copper industry, primarily relying on imported copper concentrates and owning mines in other countries.
Current Overview of Copper Ore Production in India:
Exploration Challenges:
- Reserve Estimates: India’s copper ore reserves are approximately 208 million tonnes, primarily of low grade.
- Resource Potential: The total copper resources are around 1.51 billion tonnes, needing significant exploration to be mined effectively.
- Exploration Oversight: The National Mineral Exploration Trust (NMET), under the Ministry of Mines, manages mineral block exploration.
- Private Sector Engagement: There has been limited private sector involvement in exploration, which has slowed the development of new mines. For instance, NMET approved only two copper exploration projects in FY24 and FY23.
- Policy Changes: In 2023, the Ministry of Mines updated regulations to boost private exploration of critical minerals, including copper.
Reliance on Imports:
- Critical Mineral Status: Copper’s designation as a critical mineral emphasizes its importance in clean energy technologies such as wind turbines and EV batteries, highlighting the need for stable supplies.
- Import Strategies: India is actively seeking new import sources and has invested in copper-rich regions like Mongolia, Zambia, and Chile to secure its copper supply chain through major private sector collaborations.
-Source: Indian Express
