Cooper in India: Deposits, Mining, Demand and Role in Economy
Copper, a malleable and ductile metal known for its excellent heat and electricity conductivity, has become a key component in various sectors, including construction, consumer durables, transportation, and industrial manufacturing.
Properties and Applications of Copper
Copper’s unique properties, such as corrosion resistance and antimicrobial characteristics, have made it an essential material in numerous applications. It is widely used in electrical wiring, plumbing, and roofing due to its durability and efficiency in conducting electricity and heat.
Additionally, copper’s role in clean energy technologies, such as solar panels, electric vehicles (EVs), and energy-efficient motors, has further increased its demand. As a 100% recyclable metal, copper also contributes to the circular economy, making it an environmentally friendly choice.
Copper Deposits and Mining in India
India’s copper deposits are primarily located in the states of Jharkhand, Madhya Pradesh, Rajasthan, Andhra Pradesh, Karnataka, and Tamil Nadu. The Singhbhum district in Jharkhand, Balaghat district in Madhya Pradesh, and Jhunjhunu and Alwar districts in Rajasthan are known for their rich copper reserves. The average copper content in India’s copper ore is around 1%, which is higher than the global average of 0.8%.
Copper mining in India is predominantly carried out through open-pit mining, which accounts for 80% of the country’s copper production.
Hindustan Copper Limited (HCL), a public sector undertaking under the Ministry of Mines, is the only vertically integrated copper producer in India. HCL was established in 1967 to consolidate copper projects and has since been a key player in the country’s copper industry.
India’s Growing Copper Appetite
The demand for copper has witnessed a significant surge in the fiscal year 2023, with a 16% year-on-year growth. This increase in demand has captured the attention of policymakers and corporations, who are now focusing on the critical role of copper in driving economic growth.
India’s demand for copper is rapidly increasing due to the country’s focus on infrastructure development, renewable energy projects, and urbanization. The government’s initiatives to promote the manufacturing sector and the increasing adoption of electric vehicles have further fuelled the demand for copper. However, India’s domestic copper reserves are limited, leading to a heavy reliance on imports to meet the growing demand.
To address this issue, the government is encouraging investments in copper smelters and refineries while also promoting Indian companies to acquire copper mines abroad. These measures aim to secure a stable supply of copper and reduce dependence on international markets. The Ministry of Mines has also proposed sending an industry delegation to copper-rich Zambia to explore potential exploration and mining projects.
Copper as an Economic Barometer
Copper prices are often considered a reliable indicator of the global economic health. Unlike sector-specific commodities, copper is used across all economic sectors, making it a valuable barometer.
The demand and supply dynamics of copper, along with monetary markets and speculation, influence its prices. The surge in copper demand in India reflects the country’s economic growth and the increasing importance of copper in various industries.
Copper’s Role in Energy Efficiency
Copper plays a crucial role in promoting energy efficiency in buildings. Its excellent thermal and electrical conductivity make it an ideal material for wiring, heat exchangers, and roofing. By minimizing energy losses throughout a building’s lifespan, copper contributes to reduced energy consumption for heating, cooling, and lighting. The use of copper in energy-efficient technologies helps in creating sustainable and environmentally friendly infrastructure.
