India Unveils Strategic Plan to Boost Copper Output and Secure Global Supply Chain
India Plans Major Copper Expansion by 2047 with Global Partnerships and Investment Incentives
India has announced a comprehensive strategy to ramp up copper production, reduce its dependency on imports, and secure long-term access to global copper reserves.
The plan includes inviting foreign companies to establish smelters and refineries in India in exchange for state-owned enterprises investing in overseas mining operations.
According to a newly released government policy document—portions of which were first reported by Reuters—India, currently the world’s second-largest importer of refined copper, may need to import between 91% and 97% of its copper concentrates by 2047 if domestic production does not significantly increase.
In fiscal year 2025, copper imports rose by 4%, reaching 1.2 million metric tons. The demand is projected to surge to 3–3.3 million metric tons by 2030, and further escalate to 8.9–9.8 million metric tons by 2047.
To mitigate this growing gap, the policy outlines India’s intention to attract global mining giants—such as Chile’s state-owned Codelco and Australia’s BHP—to invest in building smelting, refining, and other downstream infrastructure in India.
The document confirms that these companies may be approached as part of India’s long-term copper strategy.
The government also encourages Indian companies to invest in overseas mining projects to ensure a reliable and diversified copper supply chain, especially in light of potential supply disruptions.
Financial Incentives and Infrastructure Development
India plans to offer a range of financial incentives, including:
Capital investment subsidies
Customs duty exemptions on imported machinery for smelters and refineries
Support for scrap processing facilities
The goal is to develop 4–5 million metric tons of new smelting and refining capacity over the long term.
Despite having an estimated 12.2 million metric tons of copper resources, only 18% are classified as reserves—highlighting the scarcity of economically viable domestic copper. The document points to challenges such as:
Resource nationalism
Geopolitical tensions
Declining ore grades
Global underinvestment in copper mining
These issues may significantly limit India’s access to copper from key exporters like Australia, Chile, Peru, and Zambia.
India also plans to incorporate a dedicated chapter on copper in its ongoing free trade agreement (FTA) negotiations with Chile and Peru, aiming to secure long-term contracts for fixed quantities of copper concentrate.
Additionally, tightening export conditions in countries such as Indonesia and Panama have further constrained India’s import options.
In parallel, the government has released a plan to enhance aluminum output, anticipating that domestic demand will reach 8.5 million metric tons by fiscal 2030.
