A major new copper smelter in India owned by Adani Enterprises Ltd has applied to become a listed copper-producing brand with the London Metal Exchange, the LME said in a notice on Wednesday.
The copper smelter, which has an annual production capacity of 500,000 metric tons, is coming online at a time of shrinking smelting margins due to new smelter capacity in China and slower-than-expected growth of copper concentrate supply.
According to Adani, the $1.2 billion Kutch Copper facility in the western state of Gujarat is the world’s biggest single-location plant of its type.
It is expected to begin smelting in May, Adani’s head of metals, Felipe Williams, said in April. Chilean copper mining giant Codelco also said in April it would begin supplying copper concentrates to the smelter for refining this year.
For India, the smelter is expected to reduce the country’s reliance on imported copper. According to the Trade Data Monitor, India imported refined copper worth $2.8 billion last year, mainly from Japan, Tanzania and Mozambique.
Copper listed for storage in LME-registered warehouses can be delivered against copper futures traded on the exchange when their contracts expire. For market players, LME-listed copper is easier to finance than non-registered brands.
(By Polina Devitt; Editing by Paul Simao)
