Gautam Adani secures ore for world’s largest single-location copper smelter in Gujarat, ET Auto
Gautam Adani secures ore for world’s largest single-location copper smelter in Gujarat, ET Auto

Gautam Adani secures ore for world’s largest single-location copper smelter in Gujarat, ET Auto

February 20, 2024
0 Comments

[ad_1]

<p>The smelter is starting up just as the global copper market experiences a collapse in the fees that processors charge miners because there’s not enough ore to go around.</p>
The smelter is starting up just as the global copper market experiences a collapse in the fees that processors charge miners because there’s not enough ore to go around.

Indian billionaire Gautam Adani’s conglomerate has signed contracts to buy 1.6 million tons a year of copper concentrate for the world’s largest single-location smelter for the industrial metal.

The first 500,000 tons of capacity at the USD 1.2 billion facility in Mundra in Gujarat is set to start operations next month, according to Vinay Prakash, chief executive officer at Adani Natural Resources. This will be expanded to 1 million tons by March 2029 to cater for a forecast doubling of Indian copper demand by the end of the decade, he said in an interview.

Adani Enterprises Ltd., the port-to-power conglomerate’s flagship company, is seeking resource security in critical minerals and is resuming capital expenditure now that its shares have stabilized after a short-seller attack in January 2023. The smelter is starting up just as the global copper market experiences a collapse in the fees that processors charge miners because there’s not enough ore to go around.

A combination of high operating costs and the low fees means smelters and refiners globally may be forced to curtail production, Prakash said. “Our plant will be a low-cost producer with higher metal recovery and this will help us to remain competitive in the market.”

The concentrate deals are a mix of short- and long-term arrangements, Prakash said, without disclosing the suppliers. Concentrate supply is likely to increase in the medium- to long-term as more mining projects, including in Africa and Peru, come on stream, he said.

  • Published On Feb 11, 2024 at 04:12 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETAuto App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


[ad_2]

Source link

Add a comment

Your email address will not be published. Required fields are marked *

Award-winning, family owned dealership of new and pre-owned vehicles with several locations across the city. Lowest prices and the best customer service guaranteed.
Copyright © 2024 SearchMyCar. All rights reserved.