Hindalco Industries Ltd and Hindustan Copper Ltd (HCL), a Miniratna central public sector enterprise (CPSE) on Thursday signed a memorandum of understanding (MoU) for the long-term purchase and sale of copper concentrate produced by HCL.
The MoU was inked by Arun Kumar Shukla, Chairman and Managing Director, HCL and Satish Pai, Managing Director, Hindalco Industries.
The public-private partnership (PPP) has been aligned with the government’s clarion call for the Aatmaairbhar Bharat Abhiyan. It is expected to be a major step towards import substitution and reducing the nation’s dependence on imported copper concentrate.
Speaking on the occasion, Pai said, “We are honoured to partner Hindustan Copper Ltd. This agreement is a major step forward towards Aatmanirbhar Bharat as it 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.”
“It adds strategic value to Hindalco’s value chain and empowers us to offer a more reliable supply of copper products to feed diverse copper downstream sectors in India. This is an excellent example of a public-private partnership creating a win-win solution for both the organisations,” he added.
HCL is the only producer of copper concentrate in India. Under this MoU, 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 is used by key industries, such as power, electronics, railways and construction.
HCL’s Shukla said, “This partnership will go a long way in building the domestic copper industry by ensuring efficient utilisation 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. This will also fulfil the country’s mission of Make in India and Aatmanirbhar Bharat Abhiyan.”
HCL has the distinction of being the nation’s only vertically integrated copper producing company, from mining to beneficiation, smelting, refining and casting of refined copper metal into downstream saleable products.
Hindalco is India’s largest custom copper producer, currently contributing to over 50 per cent of India’s domestic refined copper requirements. Hindalco’s copper products are used in India’s core infrastructural sectors, including power, construction, automobiles, railways, etc. Hindalco operates Asia’s biggest single-location custom Copper Smelter at Dahej in Gujarat.