Hindalco at present contributes to over 50% of India’s domestic copper requirement and operates Asia’s biggest single location custom copper smelter at Dahej in Gujarat.
While Hind Copper will supply domestically mined copper concentrate, Hindalco will manufacture refined copper for supplies to the downstream industries.
Hindalco Industries has tied up with Hundustan Copper to source copper concentrate in a bid to make import substitution, which would reduce the nation’s dependence on imported copper. The Mini Ratna Hindustan Copper and private sector Hindalco has signed a memorandum of understanding on Thursday for long-term sale and purchase of copper concentrate produced by the CPSE.
Satish Pai, managing director, Hindalco, said the MOU adds strategic value to the refined copper producer and empowers the company to offer more reliable copper products to feed diverse copper downstream sectors in India. “This is a unique public-private partnership, which aligns with the government’s policy of Atmanirbhar Bharat,” Pai said.
While Hind Copper will supply domestically mined copper concentrate, Hindalco will manufacture refined copper for supplies to the downstream industries. Hindustan Copper, the only producer of copper concentrate in India, under this MoU, will supply around 60% (copper content) of HCL’s total current copper concentrate production to Hindalco. Hind copper produced 4 million tonne copper ore in FY20 but there were halt in operations, for which it reported a consolidated loss of Rs 514.27 crore for the quarter to March FY20.
Hindalco’s copper is used by key industries, such as power, electronics, railways and construction, whereas Hind Copper being the nation’s only vertically integrated copper producing company from mining to beneficiation, smelting, refining and casting, the entire value chain of copper producers and users will be mostly supported by indegenous copper.
Hindalco at present contributes to over 50% of India’s domestic copper requirement and operates Asia’s biggest single location custom copper smelter at Dahej in Gujarat. India’s core infrastructural sector’s copper requirement is mainly supported by Hindalco. Hindalco’s copper business registered a 28% decline in value terms with total sales at Rs 4,717 crore during the fourth quarter against Rs 6,513 crore during the corresponding period last fiscal. This hit has been mainly for the lock down, which created hurdles in sourcing copper concentrate.
The company has been trying to make its copper business LME delinked and the pact will be important to make this effective.
“This partnership will go a long way in building the domestic copper industry by ensuring efficient utilisation of the country’s mineral resources in a sustainable manner. With this partnership, HCL will be taking a step towards assuring the supply of raw material to the Indigenous copper manufacturers. This will also fulfil the country’s mission of Make in India,” Arun Kumar Shukla, chairman and managing director, Hindustan Copper, said.