Indian aluminum and copper smelter Hindalco has signed a memorandum of understanding with Hindustan Copper Limited (HCL) for long-term supply of copper concentrate.
Under the agreement, Hindalco will receive about 60pc of HCL’s copper concentrate production, which currently stands at 4mn mt per annum, but is slated to be scaled to 20mn mt. The latter is the only producer of the material in India.
Hindalco also indicated that it will use the concentrate to make the red metal for use in industries such as power, construction and railways.
Satish Pai, managing director of Hindalco, said the move was a big step toward making the Indian copper market self-sufficient and reducing gits reliance on imports.
Hindalco currently holds a 50pc share in the domestic refined copper market and operates the largest single-location custom copper smelter in Dahej, Gujarat.