Industrialist Gautam AdaniImage Credit source: File Photo : PTI
Indian billionaire Gautam Adani’s group has signed a deal to buy 1.6 million tonnes of copper per year for the world’s largest single locator smelter for industrial metals. Let us tell you that smelter means the process through which ore is converted into metal. According to Vinay Prakash, CEO of Adani Natural Resources, the first 500,000 tonne capacity facility in Mundra, Gujarat, worth $1.2 billion, is going to start its operations next month. There are plans to expand it to 1 million tonnes by March 2029 to meet predictions of Indian copper demand doubling by the end of the decade, he said in an interview.
The company’s bad days are coming to an end
Adani Enterprises Ltd, the port-to-power group’s flagship company, is seeking resource security in critical minerals and is now resuming capital spending as its shares stagnate after a short-seller attack in January 2023 Are. Smelters are just getting started The global copper market is experiencing a decline in the fees processors charge miners because there is not enough ore to go around.
Adani Group will become the strongman of the market
Prakash said the combination of higher operating costs and lower tariffs means smelters and refiners globally may be forced to cut production. Our plant will have low cost production with high quality metal recovery and this will help us survive in the market. Without disclosing the suppliers, Prakash said concentrate deals are a mix of short- and long-term arrangements. Concentrate supply is likely to increase in the medium to long term due to more mining projects.