Adani’s Kutch Copper Faces Raw Material Crunch Amid Global Mine Disruptions

Gautam Adani’s ₹10,000-crore ($1.2 billion) copper smelter in Gujarat is struggling to scale operations as global ore shortages tighten. Kutch Copper Ltd, launched in June after several delays, has received less than 10% of the ore needed to run its 5,00,000-ton-a-year facility at full capacity, as per news reports.

Customs data shows the plant imported only about 1,47,000 tons of copper concentrate in the 10 months to October. In contrast, Hindalco Industries Ltd brought in over 1 million tons during the same period, according to the news reports.

Global Mine Disruptions Deepen the Shortfall

A wave of disruptions at major mines has pressured supplies worldwide. Production challenges at Freeport-McMoRan Inc., Hudbay Minerals Inc., Ivanhoe Mines Ltd., and Chilean state miner Codelco have reduced the availability of copper concentrate.

Adding to the strain, China’s rapid and relentless expansion of smelting capacity has intensified competition for raw materials, squeezing profit margins and forcing several non-Chinese smelters to cut output or shut facilities.

Rising Costs and Slower Ramp-Up for New Entrants

With treatment and refining charges hitting record lows, smelters are accepting weaker margins simply to secure feedstock. For new players like Kutch Copper, which aims to double capacity to 1 million tons within four years, the scarcity translates into higher operating costs and a prolonged scale-up timeline.

BHP Group has supplied about 4,700 tons so far, while additional shipments came from Glencore Plc and Hudbay.

Also Read: Adani Group Likely to Enter Aviation Training Sector!

Conclusion

Kutch Copper’s slow start reflects the structural hurdles facing India’s ambition to strengthen its metals self-reliance. Demand from infrastructure, power, and construction continues to soar, but limited domestic ore reserves and constrained global supply chains pose significant challenges for new smelters trying to establish reliable feedstock sources.

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