Copper offers India a glowing hot opportunity: Now for a strategy

There are good reasons for it. Copper is integral to the world’s energy transition and digital transformation. From electric vehicles and solar panels to artificial intelligence (AI) data centres and high-voltage transmission lines, copper is at the heart of every green and digital transition the world is aiming for.

Its conductivity, durability and recyclability make it critical to emerging technologies that are reshaping economies.

Yet, India, despite being rich in copper reserves, is at risk of missing a leadership opportunity.

Also Read: Recycling should lead India’s quest for critical minerals like lithium

Demand is rising, but supply isn’t: According to BHP, one of the world’s largest mining companies, India’s copper demand is projected to increase fivefold over the next 25 years.

The Indian Primary Copper Producers Association estimates a 7% annual growth rate in domestic demand, driven by government spending on renewables, infrastructure and electric mobility.

India has an estimated 1.5 billion tonnes of copper ore, enough to fuel large-scale production for decades. But the paradox is that India imports most of the copper it consumes.

Currently, Hindustan Copper Ltd (HCL) is the only fully integrated copper producer in the country, handling everything from mining to refining. Other players—such as Hindalco and the now-inactive Sterlite Copper—are dependent on imported copper concentrate.

The Sterlite setback: The most significant turning point came in 2018 when Vedanta’s Sterlite Copper plant in Thoothukudi, Tamil Nadu, was shut down following public protests over alleged environmental violations.

The situation escalated into violence, culminating in police firing that left 13 people dead. The Tamil Nadu government ordered the plant’s permanent closure.

The impact was immediate and long-lasting. The Sterlite facility accounted for 46% of India’s copper production.

With its closure, India turned from a net exporter to a net importer of refined copper—a reversal that has widened the country’s trade deficit and exposed supply chains to global volatility.

Also Read: Don’t let Sterlite go scot-free but cease knee-jerk reactions to allegations of corporate violations

A global race is on: While India’s production remains constrained, other countries are moving quickly to secure future copper supplies.

Barrick Gold Corporation is investing $6 billion in a copper mine in Pakistan, scheduled to begin operations by 2028 and expected to run for 40 years. The company is also expanding operations in Zambia, one of the world’s key copper-producing regions.

China, Chile, US and Peru are racing ahead to secure copper as a strategic resource—a critical input not only for economic growth but also for national security.

Some signs of progress: There are indeed some encouraging signs emerging. Major Indian conglomerates such as JSW Group, Aditya Birla Group and Adani Group have announced plans to invest in copper refining and processing infrastructure.

On the policy front, the government has initiated the auction of copper blocks in mineral-rich states like Rajasthan and Madhya Pradesh, under the new Exploration Licence (EL) regime.

Also Read: JSW secures Hindustan Copper mines in Jharkhand in strategic move into non-ferrous metals

This new EL framework—launched in 2024—is a significant policy innovation. It opens up 13 exploration blocks across 10 states for critical minerals like copper, rare earth elements, gold and vanadium, and aims to attract private participation through transparent, AI-supported auctions.

It also introduces incentives such as financial reimbursements up to ₹20 crore through the National Mineral Exploration Trust (NMET) and leverages advanced data analytics for mineral mapping.

However, these initiatives, while important, cannot operate in silos. Unlocking India’s true mineral potential will require faster environmental clearances, streamlined regulatory processes and investor-friendly terms.

There’s also a pressing need for a centralized regulatory authority to coordinate exploration, compliance and sustainability standards across ministries and states.

Equally vital is community engagement.

The Thoothukudi tragedy of 2018 serves as a stark reminder that industrial projects, no matter how strategic, cannot proceed without local consent and environmental accountability.

The pursuit of resource security must go hand-in-hand with ecological responsibility and social legitimacy.

Recycling helps, but it’s not enough: Copper is 100% recyclable, and this makes it an essential part of the circular economy.

But even under the most optimistic scenarios, recycling cannot meet the explosive demand expected in the coming decades. New mining activity will be unavoidable.

That said, recycling still has an important role. India needs to develop urban mining capabilities, particularly in e-waste management, to reclaim copper and other critical minerals from used electronics and electrical equipment.

Currently, our recycling ecosystem remains fragmented and informal—unlike countries such as Japan or the EU, which have robust systems for recovering strategic materials.

Also Read: Mint Explainer: Why is Vedanta looking to sell its copper plant in Tuticorin?

A national copper strategy must address both ends of the supply chain. On one hand, enabling responsible mining through modern exploration techniques, investor confidence and local engagement; on the other, investing in domestic refining as well as recycling infrastructure and building strategic stockpiles to cushion against global shocks.

India has the reserves. It has industrial capacity and it has the demand drivers.

This is the time to craft a national copper strategy, one that combines exploration, private sector participation, environmental responsibility and long-term investment in processing capacity.

India’s vision of energy security, digital competitiveness and low-carbon growth hinges on materials like copper. The question is not whether we need it, but how quickly we are willing to act.

The author is assistant professor of marketing, Jindal Global Business School, O.P. Jindal Global