India to send industry delegation for copper mining opportunities in Zambia

Subject: Geography

Section: Economic Geography

Context:

The Indian Mines Ministry is planning to send an industry delegation to Zambia to discuss potential copper exploration and mining projects.
Key Indian companies like Vedanta and its subsidiary Hindustan Zinc, Ola Electric, and LOHUM (a lithium-ion battery recycler) have shown interest in this initiative.

Details:

Zambia holds about 6% of the world’s copper reserves and was the eighth-largest copper producer in 2022.
The second meeting of the Joint Working Group (JWG), set up under a memorandum of understanding between India and Zambia, is scheduled to take place in Zambia.
The meeting aims to facilitate collaboration between the Indian public and private sectors and the Zambian mining industry.
India currently has a limited presence in Zambia’s copper mining sector, with Vedanta recently regaining control of Konkola Copper Mines.
The growing domestic demand for copper in India, particularly for clean energy technologies, and the country’s reliance on copper imports make the acquisition of overseas copper mining blocks attractive.
Other international companies, like Canada’s First Quantum Minerals and China’s CNMC, are also significant players in Zambia’s copper industry.
LOHUM, however, clarified that its interest in the delegation does not extend to acquiring or exploring copper mining blocks in Zambia, as it focuses on recycling lithium-ion batteries.

Copper demand in India:

As per International Copper Association India, domestic copper demand grew by 16 per cent in FY2022-24, while demand for copper in clean energy technologies grew by 32 per cent.
At the same time, net imports of copper cathode, which is the basic product of copper production, grew by 180 per cent in the same financial year as India is not self-sufficient in copper due to low domestic reserves.

About Copper Mining:

Copper is a chemical element with a distinctive reddish-brown colour. It is an excellent conductor of electricity and heat.
Copper is found in various ores in the Earth’s crust. Common copper minerals include chalcopyrite, bornite, chalcocite, and malachite.
Copper mining involves several stages, from the discovery of copper deposits to the extraction and processing of the metal.
There are various mining methods used for extracting copper, and the choice depends on factors such as the depth of the deposit, the type of ore, and economic considerations.
Open-Pit Mining: Used for shallow deposits. Large pits are excavated, and ore is extracted from the surface.
It accounts for 80% of all copper mining operations in the world.
Underground Mining: Used for deeper deposits. Shafts or tunnels are dug to reach the ore underground.
Chile is the top copper producer in the world, with 27% of global copper production.
Chile is followed by another South American country, Peru, responsible for 10% of global production.

Copper Mining in India:

There are approximately 700 copper mines in operation globally, of which 127 are in India.
However, India is poor in terms of copper reserves & production.
India has low-grade copper ore (less than 1% metal content) compared to the international average of 2.5%.
Madhya Pradesh is the leading producer of copper in India. It accounts for producing 53% of copper in this country.
Rajasthan accounts for 43%, and Jharkhand accounts for 4% of copper production in India.

Source: IE