Click the copper gap | Photo credit: Fabian Bimmer
Copper is more and more called “new oil” due to the essential role in the energy transition, similar to the way oil was perceived in previous decades. As an excellent heat and electricity conductor, the use of copper is increasing worldwide due to the application in modern technologies, such as renewable energy and electric vehicles. It is not surprising that world copper demand has tripled in the last 50 years. While copper demand is growing exponentially in India, the growing dependence on India in imports could mean problems due to its economic growth and development unless the wide gap of demand supply is approached urgently and effective.
The author, Balvier Kumar, former secretary, Ministry of Mines
India does not have enough resources or copper reserves. It keeps only around 0.31% of the world’s copper ore reserves, and mining production is only 0.2 percent of world production. Total copper resources in India are 12.20 million tons (MT), or that 2.16 TM constitute reserves. Due to the low availability or copper reserves or resources of the country, India always has an importer or mineral and copper concentrate.
However, India was among the main 10 worldwide in the refined copper copper production of Sterlite Copper (capacity of 0.4 mt per year) in 2018. Since then, the production of refined copper has decreased from 0.79 TM in the 200 Fy24 fy24 fy24 fy24 or just FY25. The closure has made India a net copper importer, and the trend persists. The copper is now among the 10 main imports of goods, contributing with 1.7 percent to total imports. Things can remain unchanged with the consumption of rising continuously of modern and decarbonized technologies, such as renewable energy and electric vehicles.
Due to limited domestic availability, the Indian copper industry depends on imports for 90 percent of its concentrate needs; The rest comes from Hindustan Copper, the only producer integrated in the country. The Government has tried to boost the industry eliminating the import duty of copper concentrates used in the foundations to produce refined copper. Things were going well, but supplies’ shortage has emerged due to the closure of several important mines in Peru and Chile, the largest copper producers and a nation with significant spare parts. In addition, many countries are now restricting the export of copper concentrate to meet their future requirements, and this trend is likely to intensify further.
The International Copper Association, citing the investigation of the CRU Group based in London, said that the demand for copper in India would grow more with an annual compound rate of 7% between 2020 and 2040, compared to the global average growth of only 1.85% of CAGR. While some predict that copper demand will double by 2030, the ICRA of the qualification agency has estimated the demand to grow 6.7% in the current fiscal year, driven by the increase in demand for construction and infrastructure sectors.
A rats race is under the world to ensure copper reservations for the future, either through the acquisition or the joint company, in countries rich in copper such as Chile and Peru. Countries like China, Japan and the United States are leaders. They also participate in the long -term supply of mineral and concentrate. Due to its fixed resources of critical minerals essential for modern technologies, Africa has become a growing geopolitical rivalry between the United States and China.
Back Home, a new mineral concession, namely, an exploration license for 29 deep minerals and critical minerals, including copper, has been introduced through the law of amendment of mines and minerals (development and regulation), 2023. Articulation, an articulation) or sish, an articulation, an articulation) or a bensh or a Byesh or Svanty) or Bedesh. State companies have been exploring to acquire strategic minerals abroad to ensure a resistant supply to the Indian national industry. Mineral blocks are being auctioned. Recently, the Government signed an initial race with Chile, one of the main copper producers in the world and the nation with the largest copper ore reserves, to explore new opportunities for joint companies, long -term supply groups and cross -border investments.
India would do well to ensure a long -term supply or copper mineral, scrap and concentrates. The government can also prove a production liaison incentive scheme (PLI) to encourage exist and the new players to enter the field, separated from allowing the sterlite copper to restart. Improving national production is essential to ensure the economic future and long -term energy of India. Copper is the most critical metal for energy transition. India has a high objective to achieve only zero by 2070. We have to go to work now to avoid an imminent crisis.
Balizer Kumar is the former secretary, Ministry of Mines
Posted on April 17, 2025