India: Hindustan Copper targets 30% rise in ore output amid firm global demand

• Copper supply risks deepen amid slowing global mine additions
  
  
• AI infrastructure demand accelerates pressure on copper markets
  
  

State-owned Hindustan Copper Limited (HCL) is targeting nearly 30% growth in copper ore production in FY'27 amid strengthening global demand from artificial intelligence (AI)-linked infrastructure, electric vehicles (EVs), renewable energy and power transmission sectors.

The company is expected to produce around 4.7 mnt of ore in FY'27, supported by higher output from its Malanjkhand mine in Madhya Pradesh and Khetri operations in Rajasthan. HCL also stated that all major contracts related to the Malanjkhand expansion project have already been awarded, with execution currently underway.

India's only integrated copper ore producer is simultaneously advancing its long-term capacity expansion strategy. The company plans to scale up ore production capacity to 12.2 mnt over the next five years through an estimated investment of around INR 7,200 crore, primarily funded through internal accruals. The company further indicated that FY'27 could emerge as one of its strongest operational years amid supportive copper market fundamentals.

Tight concentrate availability supports outlook

The planned expansion comes at a time when global copper markets continue to witness tightening supply conditions. Declining ore grades, delays in greenfield mine development and operational disruptions at key global mining assets have restricted concentrate availability in the international market, keeping the long-term supply outlook constrained.

According to the company, demand growth from AI-driven data centres, grid modernisation projects and EV manufacturing is expected to remain strong over the medium to long term. Upcoming data centre projects in Visakhapatnam, along with continued investments in transmission infrastructure across India and China, are likely to support higher copper consumption globally.

Meanwhile, disruptions in sulphuric acid shipments linked to geopolitical tensions and production issues at Indonesias Grasberg mine have added further pressure on global copper supply chains. Market participants noted that tighter concentrate availability could continue to influence global TC/RC dynamics in the coming quarters.

Copper prices recently touched nearly $14,700/t ($6.68/lb) before witnessing marginal correction, though prices continue to remain around 10% higher y-o-y. Industry participants expect copper fundamentals to remain firm over the longer term amid structurally rising demand from energy transition sectors and limited large-scale mine additions globally.