Hindalco Industries Limited and state-owned Hindustan Copper Limited (HCL) today signed a Memorandum of Understanding (MoU) for long-term purchase and sale of copper concentrate produced by the latter.
With this partnership, the companies have moved towards import substitution, reducing the nation’s dependence on copper concentrate sourced from abroad.
Satish Pai, managing director, Hindalco Industries Ltd said in a statement, “This agreement will help in utilising locally mined copper concentrate for domestic production of refined copper and it reduces the nation’s dependence on import of a critical metal.”
Hindustan Copper Ltd is the only producer of copper concentrate in India.
Under this Memorandum of Understanding, around 60 per cent (copper content) of HCL’s current copper concentrate production will be utilised by Hindalco in the manufacture of refined copper.
Hindalco’s copper finds application in key industries, such as power, electronics, railways and construction.
Arun Kumar Shukla, chairman and managing director at Hindustan Copper said, “This partnership will go a long way in building the domestic copper industry by ensuring efficient utilization of the country’s mineral resources in a sustainable manner. With this partnership, HCL will be taking a step towards assuring the supply of raw material to the indigenous copper manufacturers.”
Hindalco is India’s largest custom copper producer, currently contributing to over 50 per cent of India’s domestic refined copper requirements. The company operates Asia’s biggest single-location custom copper smelter at Dahej in Gujarat.