Core Insights - Kutch Copper Ltd.'s copper smelter in Gujarat, which has a capacity of 500,000 tons per year, is currently operating at a fraction of its required raw material, importing only about 147,000 tons of copper concentrate in the 10 months to October, significantly below the 1.6 million tons needed for full operation [1][8] - The global supply squeeze has been exacerbated by mine disruptions at major producers, leading to record low treatment and refining charges, indicating that smelters are accepting tighter margins to secure material [6][8] - The slow start of Kutch Copper highlights the challenges India faces in increasing its metals self-reliance, as demand from infrastructure, power, and construction sectors outpaces processing capacity and domestic ore reserves [8] Company-Specific Insights - Kutch Copper plans to double its annual capacity to 1 million tons within four years, but tight supply conditions are expected to increase operational expenses and prolong the ramp-up process [6][8] - Adani's smelter is anticipated to be more efficient than many competitors, but it may operate at a loss in the short term as it ramps up production [7][8] - BHP Group has supplied 4,700 tons to the smelter, with additional shipments from Glencore Plc and Hudbay, indicating reliance on external suppliers for raw materials [7][8]
Adani’s $1.2 billion copper smelter caught up in global ore shortage
The Economic Times·2025-11-25 01:37