State-run Hindustan Copper is exploring a joint venture with Chile's Codelco to mine and sell copper concentrate, according to sources familiar with the matter. The company plans to sell copper concentrate produced by mines it is acquiring from Codelco to major Indian copper producers Hindalco and Adani. This strategic move aims to meet India's growing demand for copper, with the country currently importing approximately 91-97% of its copper concentrates by 2047. As per latest reports, Hindustan Copper would be open to partnering with Coal India or NTPC Mining for the joint venture, with due diligence currently being conducted. The company is also in talks to form a joint venture with state-run Codelco to mine and sell copper, declining to be identified as the deliberations were confidential.
According to India's mines secretary, Hindustan Copper, Coal India and NTPC Mining are in discussions to secure four copper mining blocks from Codelco. The companies signed a preliminary agreement last year about exploring mutually beneficial opportunities in exploration and mining, followed by a non-disclosure agreement in May this year. A technical team from Hindustan Copper and executives from NTPC Mining and Coal India visited Chile earlier this year, with mining operations expected to begin in a decade. Codelco's secretary of mines in India confirmed that in April, the three companies were actively discussing the acquisition of these mining blocks. The company has also appointed a deal advisor to facilitate the transaction process.
India produces an estimated 573,000 metric tons of refined copper annually but demand is much greater at around 1.8 million tons. As reported by sources, Hindustan Copper is open to having partners for the joint venture, including Coal India and NTPC Mining. The Adani conglomerate operates Kutch Copper, a $1.2 billion smelter in Gujarat that it claims is the world's biggest single-location plant of its type. India, which is the second largest importer of refined copper in the world, could have to import between 91% and 97% of its copper concentrates by the year 2047, highlighting the critical supply-demand imbalance. Hindalco, an Aditya Birla Group-owned firm, is one of India's biggest aluminium and copper producers.
The upstream tie-up with Codelco is crucial for companies like Hindalco and Adani's Kutch Copper as it could reduce exposure to spot-market shortages and price swings. Smelters often face economic challenges when concentrate supply is tight, leading to squeezed treatment and refining charges. A dedicated supply line from Hindustan Copper's potential Chilean operations could make cash flows less dependent on volatile feedstock conditions. However, with a decade-long lead time before meaningful concentrate production begins, markets are currently reacting more to perceived supply security than immediate changes in India's refined-copper balance. This strategic partnership represents a significant step toward addressing India's growing copper supply challenges.
