India’s Copper Conundrum: Growing Imports and Overseas Exploration

India’s Copper Conundrum: Growing Imports and Overseas Exploration

Sub: Geo

Sec: Eco Geo

Why This is in News

India’s copper mining sector is facing challenges due to stagnant domestic production, leading to a surge in copper imports. With copper’s critical role in clean energy technologies and India’s increased reliance on imports, the government and key industry players are eyeing overseas assets to secure a steady supply.

Overview of Copper Demand and Importance

Global Copper Demand: Copper is a key indicator of economic growth, and its demand is expected to surge in the coming decade across the world.

India’s Growing Import Dependence: India’s copper concentrate imports doubled to ₹26,000 crore in FY24 from ₹13,000 crore in FY19, primarily due to stagnant domestic production.

Copper’s Role in Clean Energy: As copper is crucial for clean energy technologies such as wind turbines and electric vehicle (EV) batteries, India’s increasing reliance on imports has garnered attention.

About Copper:  Copper is a malleable and ductile metal with excellent conductivity for heat and electricity. It is known for its corrosion resistance and antimicrobial properties.

Malleability: Ability to be pressed or rolled into thin sheets without breaking.

Ductility: Ability to be stretched into thin wire without losing strength or breaking.

Applications: Widely used in construction, consumer durables, transportation, and industrial manufacturing.

Essential for clean energy technologies: solar panels, electric vehicles (EVs), and energy-efficient motors.

100% recyclable, contributing to a circular economy.

Occurrence and Composition: Found naturally in the Earth’s crust in various forms.

Key forms include:

• Sulphide deposits: Chalcopyrite, Bornite, Chalcocite, Covellite.
• Carbonate deposits: Azurite, Malachite.
• Silicate deposits: Chrysocolla, Dioptase.
• Native copper: Pure form.

Average copper content in global commercial deposits: 0.8%.

In India, copper ore typically contains around 1% copper.

Mining Methods:

• Open-pit mining: Dominates global copper mining, accounting for 80% of operations.
• Underground mining: Used where copper is deeper underground.

Copper Deposits in India:

Major deposits:

• Singhbhum (Jharkhand).
• Balaghat (Madhya Pradesh).
• Jhunjhunu and Alwar (Rajasthan).

Minor deposits:

• Agnigundala (Andhra Pradesh).
• Chitradurga and Hassan (Karnataka).
• South Arcot (Tamil Nadu).

India’s Copper Demand: Copper demand is rising due to infrastructure projects, renewable energy initiatives, and urbanization.

India heavily relies on imports due to limited domestic reserves.

India’s Copper Supply Chain and Overseas Assets

Government and Industry Collaboration: Key players like Hindalco’s Birla Copper, Adani’s Kutch Copper, and Vedanta’s Sterlite Copper are working with the Ministry of Mines to secure copper supply from overseas. India is focusing on countries like Mongolia, Zambia, and Chile for securing copper assets.

Critical Mineral Status: Copper has been designated as a critical mineral due to its essential role in new technologies, making its supply chain security a priority.

Future Prospects and the Role of Overseas Assets

Underutilized Potential: India’s copper mining potential remains largely untapped. Experts suggest greater funding for private exploration agencies and even the possible privatization of HCL to boost domestic production.

Overseas Engagements: In the near term, India may need to strategically engage with copper-rich countries like Zambia, the Democratic Republic of Congo (DCR), and Chile to secure its copper supply.