The company had previously denied that it was negotiating a joint venture with Codelco.
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Four mining blocks under discussion
Hindustan Copper, Coal India and NTPC Mining are discussing the possibility of securing four copper mining blocks from Codelco, India’s mines secretary said in April.
Hindustan Copper signed a preliminary agreement with Codelco last year to explore mutually beneficial opportunities in exploration and mining. In May, it signed a non-disclosure agreement with Codelco and appointed an adviser for the potential deal.
According to a report in Reuters that cited two sources familiar with the matter, due diligence is currently under way. Hindustan Copper is also open to involving partners such as Coal India and NTPC Mining in the proposed joint venture.
A technical team from Hindustan Copper, along with executives from Coal India and NTPC Mining, visited Chile earlier this year, the sources said. However, mining operations and concentrate production could still take about a decade to begin.
India faces growing copper shortfall
India is the world’s second-largest importer of refined copper and could need to import between 91% and 97% of its copper concentrates by 2047, according to the government.
The country produces an estimated 573,000 metric tonnes of refined copper annually, while demand is around 1.8 million tonnes.
Hindalco is among India’s largest aluminium and copper producers. Adani operates the $1.2-billion Kutch Copper smelter in Gujarat, which it describes as the world’s largest single-location plant of its kind.
