Adani Conglomerate secures contracts for copper concentrate in Gujarat

The first 500,000 tons of ability at the Adani Conglomerate $1.2 billion facility in Mundra in Gujarat is set to begin operations next month.

Gautam Adani’s conglomerate has finalized agreements to purchase 1.6 million tons per year of copper concentrate for its upcoming single-location smelter, touted as the world’s largest. 

The $1.2 billion facility, situated in Mundra, Gujarat, is poised to commence operations next month, with an initial capacity of 500,000 tons. 

This capacity is slated to expand to 1 million tons by March 2029 to accommodate the projected doubling of Indian copper demand by the decade’s end, as per Vinay Prakash, CEO of Adani Natural Resources.

Adani Enterprises Ltd. Pursues Resource Security

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Adani Enterprises Ltd., the flagship company of the conglomerate, is focused on securing critical minerals resources and is reviving capital expenditure initiatives following stabilization of its shares post a short-seller attack in January 2023.

Smelter Start-Up Amidst Market Dynamics

The smelter’s launch coincides with a downturn in the global copper market, marked by a decline in processing fees charged by miners due to a shortage of ore. 

Prakash highlights that high operating costs coupled with low fees may compel smelters and refiners worldwide to scale back production. However, Adani’s plant aims to be a low-cost producer with superior metal recovery, ensuring competitiveness in the market.

Concentrate Supply Deals

The concentrate procurement contracts encompass a blend of short- and long-term arrangements, with Prakash refraining from disclosing the suppliers. 

He anticipates a rise in concentrate supply in the medium to long term as additional mining projects, particularly in Africa and Peru, come online.

Source – NDTV