India: Hindustan Copper explores Chile copper partnership to secure concentrate supply

• Hindustan Copper plans to source copper concentrate from Chile
• Potential Codelco partnership could strengthen India’s long-term copper security

State-run Hindustan Copper Ltd plans to sell copper concentrate produced from mining assets it is seeking to acquire in Chile to domestic consumers, including Hindalco Industries and the Adani Group, Reuters reported, citing two sources familiar with the matter. The company is also in discussions with Chile’s state-owned copper producer Codelco to establish a joint venture for mining and marketing copper as India seeks to secure long-term supplies of the metal, according to the report.

India’s Mines Secretary said in April that Hindustan Copper, Coal India and NTPC Mining were jointly pursuing four copper mining blocks from Codelco, the report said. The copper miner signed a preliminary agreement with Codelco last year to explore mutually beneficial opportunities in mining and exploration, followed by a non-disclosure agreement and the appointment of a transaction adviser in May 2026.

Due diligence on the Chilean assets is underway and that Hindustan Copper remains open to bringing in partners such as Coal India and NTPC Mining for the proposed joint venture, the report said, adding that technical teams from Hindustan Copper, NTPC Mining and Coal India visited Chile earlier this year, although commercial mining and concentrate production are still expected to be around a decade away.

Hindustan Copper did not respond to Reuters’ request for comment and has previously denied that it is in discussions to form a joint venture with Codelco, according to the report. The proposed overseas investment comes as India, the world’s second-largest refined copper importer, faces rising dependence on imported copper concentrate.

India currently produces around 573,000 metric tonnes of refined copper annually against domestic demand of about 1.8 million tonnes. Hindalco, part of the Aditya Birla Group, is among India’s largest aluminium and copper producers, while the Adani Group operates the $1.2 billion Kutch Copper smelter in Gujarat, which it says is the world’s largest single-location plant of its kind.

Potential support for Indian smelters

Hindalco’s Dahej smelter and Adani’s Kutch Copper facility each have around 0.5 mnt/year of capacity, with Kutch Copper planning to expand to 1 mnt/year, supporting higher domestic copper availability. As Indian smelting capacity expands, securing sufficient concentrate is becoming increasingly important amid tight global availability and rising competition for feedstock.

India’s refined copper production rose 8% y-o-y to 223,000 t during 2026, mainly driven by KCL’s ramp-up to 31,000 t from 2,300 t a year earlier. In contrast, Hindalco’s output declined 5% to 139,000 t, while Sesa Sterlite’s production fell to 53,000 t from 58,000 t.

Despite these declines, higher output from KCL lifted overall domestic refined copper production. The increase also highlights the growing importance of new smelting capacity in meeting India’s rising copper requirements. Direct access to Chilean resources could help Indian smelters diversify their supply base. It could reduce reliance on individual suppliers and spot-market purchases.

Outlook

HCL’s Chile initiative is part of its Vision 2030 strategy to strengthen India’s upstream copper sector. The company plans to invest INR 7,188 crore to raise ore production capacity from 4 mnt/year to 12.2 mnt by FY’30. However, domestic expansion may not fully bridge India’s copper concentrate gap. Mining projects require long development timelines, while demand from renewable energy, EVs, electronics and power infrastructure continues to grow.

HCL’s Chile initiative comes as raw material security becomes increasingly important for India’s expanding copper industry. The DRC’s recent ban on copper concentrate exports highlights the growing risks from resource nationalism and supply-policy changes, strengthening the case for diversifying India’s overseas concentrate sources.

Therefore, long-term supply agreements, diversified sourcing and overseas resource investments are likely to remain important for India’s copper industry. HCL’s potential Chile partnership could form part of this broader strategy by adding another source of concentrate to the country’s supply chain.