Hindalco Industries Limited and the state-owned Hindustan Copper Limited (HCL) today signed a memorandum of understanding for the long-term purchase and sale of copper concentrate produced by the latter.
With this partnership, companies have turned to import substitution, reducing the country’s dependence on copper concentrate from abroad.
“This agreement will help use locally mined copper concentrate for domestic production of refined copper and it will reduce the country’s dependence on importing a critical metal,” said Satish Pai, managing director of Hindalco Industries Ltd.
Hindustan Copper Ltd is the sole producer of copper concentrate in India.
Under this MoU, approximately 60% (copper content) of HCL’s current copper concentrate production will be used by Hindalco in the manufacture of refined copper.
Hindalco’s copper finds application in key industries, such as energy, electronics, railroads and construction.
“This partnership will go a long way in developing the national copper industry by ensuring the efficient use of the country’s mineral resources in a sustainable manner. With this partnership, HCL will take a step forward in securing the raw material supply to indigenous copper manufacturers, ”said Arun Kumar Shukla, President and CEO of Hindustan Copper.
Hindalco is India’s largest bespoke copper producer, currently contributing more than 50 percent of India’s refined copper requirement. The company operates Asia’s largest custom copper smelter at a single location in Dahej, Gujarat.