COPPER PRODUCTION IN INDIA

Disclaimer: Copyright infringement not intended.

Context:

Copper demand, a key barometer of economic growth, is poised to surge over the next decade across geographies.

About Copper

• Copper is a chemical element with the symbol Cu.
• Atomic Number: 29.
• It is a reddish-gold metal.
• It is a soft, malleable, and ductilemetal with very high thermal and electrical conductivity.

Uses

• Traditionally it has been one of the metals used to make coins, along with silver and gold, gun metals also contain copper.
• Most copper is used in electrical equipment such as wiring and motors. This is because it conducts both heat and electricity very well and can be drawn into wires.
• It also has uses in construction (for example roofing and plumbing), and industrial machinery (such as heat exchangers).
• Copper sulfate is used widely as an agricultural poison and as an algicide in water purification.
• Copper compounds, such as Fehling’s solution, are used in chemical tests for sugar detection.

Biological role

• Copper is an essential element. An adult human needs around 1.2 milligrams of copper a day, to help enzymes transfer energy in cells. Excess copper is toxic.
• Genetic diseases, such as Wilson’s disease and Menkes’ disease, can affect the body’s ability to use copper properly.
• Unlike mammals, which use iron (in hemoglobin) to transport oxygen around their bodies, some crustaceans use copper complexes.

Natural abundance

• Copper metal does occur naturally, but by far the greatest source is in minerals such as chalcopyrite and bornite.
• Copper is obtained from these ores and minerals by smelting, leaching and electrolysis.
• The major copper-producing countries are Chile, Peru and China.

Copper Scenario in India

Reserves

• Largest reserves of copper ore to the tune of 868 million tonnes (52.25%) are in the State of Rajasthan followed by Jharkhand with 251 million tonnes (15.14%) and Madhya Pradesh with 387 million tonnes (23.28%).
• Copper reserves in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Meghalaya, Nagaland, Odisha, Sikkim, Tamil Nadu, Telangana, Uttarakhand and West Bengal accounted for the remaining 33% of the total All India resources.

Production

• Madhya Pradesh is the leading producer of copper accounting for about 60% of the production, followed by Rajasthan with 39% and Jharkhand with 1 percent.
• Malanjkhand Copper Project (MCP), in Madhya Pradesh, is the largest copper ore-producing mine with 2.0 million tonnes production capacity per year.
• There are three major copper-producing companies in India namely Hindustan Copper Limited (HCL) in Public Sector, Hindalco Limited and Vedanta Industries Limited in the Private Sector.

Import and Export

• India transitioned from being a net exporter in 2017–18 to a net importer in FY19 and has remained on the same trajectory ever since.
• India imports Copper ores and concentrates from Indonesia (30%), Chile (20%), Australia (11.4%), Peru (10%).
• India exports Copper ores and concentrates to China with a share of 99% and Bangladesh.

Global Comparison

Compared with the global markets, India has limited copper ore reserves which constitute around 2% of the world’s copper reserves and mining production is just 2% of the world's production.

Some Important copper mines in operation in India

Disclaimer: Copyright infringement not intended.

• Malanjkhand Mine: The Malanjkhand Mine is a surface and underground mine located in Madhya Pradesh. It is owned by Hindustan Copper and produced an estimated 17.62 thousand tonnes of copper in 2023.
• Kolihan Mine: Located in Rajasthan, the Kolihan Mine is owned by Hindustan Copper. The underground mine produced an estimated 3.05 thousand tonnes of copper in 2023.
• Khetri Mine: The Khetri Mine is located in Rajasthan. It is owned by Hindustan Copper and produced an estimated 2.87 thousand tonnes of copper in 2023.
• Banwas Mine: Owned by Hindustan Copper, is an underground mine located in Rajasthan.
• Surda Mine: Owned by Hindustan Copper, the Surda Mine is an underground mine located in Jharkhand. It produced an estimated 1.54 thousand tonnes of copper in 2023.

Copper consumption in India and its reason for growth

• The total consumption of refined copper in the country in 2020 is around 6.60 lakh tonnes.
• Electrical/Electronic Industry is by far the largest consumer of copper.
• Copper demand in electrical segment is growing due to demand in infra sector as a result of affordable housing schemes, rural electrification.
• Other factors of demand are due to the increased thrust of Govt. of India towards "Make in India" and "Smart City" program, Atmanirbhar Bharat in Defense, Renewable Energy Target, PLI schemes for the Consumer electronics industry, Accelerated growth for Electric Vehicles.
• The projected demand for copper due to electric vehicles is expected to increase by 1.7 million tonnes by 2027.

Significance for India

• Electric Vehicle Share: India is progressing rapidly towards achieving its target of having a 30% market share in electric vehicles, by 2030. The copper content of a standard electric vehicle (EV) is approximately four times more than that of an internal combustion engine (ICE).
• Renewable energy target: In order to meet at least half of its energy needs from renewable sources, the country also plans to develop a 500 GW non-fossil fuel energy capacity by 2030. According to estimates from the International Copper Alliance, on average, renewable power generators use 8 to 12 times more copper than traditional generators.
• Low-carbon development focuses: India’s long-term plan for low-carbon development focuses on seven crucial transitions: Building an integrated, effective, and equitable transportation system and creating low-carbon electrical systems are at the top of the list. The country’s carbon intensity is expected to increase as it advances toward being a developed nation by 2047.

Recent changing scenario

Increasing reliance on imports

• In India, the production of copper ore fell to 3.78 Mt in FY24 from 4.13 Mt in FY19. As a result, copper concentrate imports have doubled to Rs 26,000 crore in FY24 from FY19.
• While domestic production of refined copper grew by 12 percent between FY19 and FY24–from 454 kilotonnes (kt) to 509 kt–much of the growth was supported by surging concentrate and anode imports.
• Demand for copper concentrate and anode imports is set to grow in the absence of adequate domestic mining.

Copper exploration lags

• In India, copper ore reserves stand at an estimated 208 Mt, most of which are of low grade, requiring extensive exploration to convert resources into reserves that are viable for mining.
• The National Mineral Exploration Trust (NMET), under the Mines ministry, oversees mineral block exploration in India.
• In 2023 the mines ministry modified rules to encourage private exploration agencies to explore critical minerals like copper.
• Since FY16, only four copper blocks have been auctioned. Globally, it can take up to 17 years on average to operationalise a copper mine.
• While the government put two copper blocks on auction as part of its critical mineral auctions over the past year, they were annulled due to insufficient investor interest.
• Since copper is a deep-seated mineral, block sizes must be large for mining operations to be commercially viable.

Way Forward

• India’s copper potential is vastly underutilised.
• Greater allocation of funds to private explorers and the privatisation of Hindustan Copper Ltd could propel copper mining in India.
• In the near future, India must strategically engage with copper-rich countries like Zambia, the Democratic Republic of Congo (DCR), and Chile, where equity in copper assets is available for offtake.
• To protect overseas mining assets amidst growing resource nationalism, the Indian government must exploring bilateral investment treaties with mineral-rich countries to de-risk investments.

Source:

https://www.mining-technology.com/marketdata/five-largest-copper-mines-india/

https://ibm.gov.in/writereaddata/files/1683196066645388a2cdf30Copper_2021.pdf

https://trendeconomy.com/data/h2/India/2603

https://mines.gov.in/webportal/copper