On February 27, the Indian government announced securing a 9,000-sq-km block in Zambia for copper and cobalt exploration. This strategic move comes as domestic copper production declines, pushing India to establish overseas mining operations.
Global Copper Supply Challenges
- China’s Response:
- With copper ore supplies tightening, China is moving to limit new smelting capacity.
- Companies seeking to build new smelters must secure long-term copper contracts from mines in DRC, Chile, and Peru.
- China currently controls 50% of global copper smelting and refining capacity.
- Increasing Global Demand:
- Copper demand is surging, especially for electric vehicle (EV) batteries and clean energy technologies.
- By 2035, demand is expected to outstrip supply from existing mines, leading to an intensified global race for copper.
Copper’s Importance & Global Production
- Key Properties:
- Copper is highly conductive, corrosion-resistant, and antimicrobial.
- Found in various forms, including sulfide deposits (chalcopyrite, bornite), carbonate deposits (azurite, malachite), and native copper.
- Major Copper-Producing Countries (2020):
- Chile: ~30% of global production.
- Peru: ~10% of global production.
India’s Domestic Copper Scenario
- Classified as a Critical Mineral:
- Copper is among 30 critical minerals for India, including Cobalt, Graphite, Gallium, and Germanium.
- Declining Production:
- 2023-24 domestic ore production: 3.78 million tonnes (mt).
- 8% decline from 2018-19 levels.
(Business Line and Ministry of Mines)
