JSW is diving into copper mining

JSW Group is diving into the copper mining business with a ₹2,600 crore bet, renting mines for operation and development from Hindustan Copper.

The company has snagged a 20-year MDO (Mine Developer and Operator) contract for two mining blocks in Jharkhand, marking its entry into India’s non-ferrous metal sector.

Backing up: Copper is the universal metal of electrification and a clean future. EV’s, Data Centers, Renewables, Real Estate, Factories, everything needs copper and tons of it.

• Consider this: an average EV needs 80kgs of copper, nearly four times a conventional vehicle.

And it takes decades to bring a new copper mine to production, markets project a potential deficit for copper supply in a few years.

The deets: the mines are owned by Hindustan Copper and will have an ore capacity of 3 million tonnes per annum once fully operational by 2027.

JSW will also build a copper concentrator plant on-site, managing everything from capital expenditure to operations. In return, Hindustan Copper will offer technical expertise and take a revenue share.

The backdrop: India imports a significant portion of its copper concentrate and in FY24, Indonesia was the largest copper concentrate supplier to India, at 35 per cent of total imported.

JSW’s entry could help reduce reliance on imports.