Is Copper the New Gold? 3 Indian Companies Powering the Shift

When markets turn choppy and unpredictable, investors naturally start looking for safer places to park their money. Gold and silver have long been go-to options during such times.

But lately, there's another metal that's been quietly stealing the spotlight-copper.

Unlike gold and silver, which are mostly used for jewellery or investment, copper is what keeps the world running. From powering your home to running electric cars and data centers, it's the metal that quietly supports modern life.

Sectors Driving Copper Demand

Sector	Key Copper Applications	Copper Intensity
Electric Vehicles (EVs)	Motors, wiring harnesses, batteries, charging stations	3-4x more copper than petrol/diesel cars
Renewable Energy	Wind turbines, solar panels, grid inverters	Solar: ~5.5 tonnes/MW
		Offshore wind: ~9 tonnes/MW
Power Infrastructure	Transmission lines, smart meters, substations, rural electrification	Rising due to energy transition
Digital Infrastructure & AI	Data centers, AI chips, cooling systems, high-speed networking gear	High due to electricity and cooling demands
Construction & Real Estate	Plumbing, electrical wiring, HVAC systems, elevators	Consistent demand from residential and commercial growth
Industrial Equipment	Manufacturing machines, electric motors, automation systems	Strong copper use in motors and tools

Data Source: Equitymaster

Its ability to conduct electricity and heat efficiently makes it essential in almost every new-age technology. No wonder it's now being called a "super metal", not for its shine, but for its growing role in shaping the future economy.

How Does India Fare in This Race?

India, interestingly, is one of the top 10 consumers of copper in the world. Yet, it holds just 0.2% of global copper reserves.

Most of the country's copper reserves are in Rajasthan, Madhya Pradesh, and Jharkhand.

We consume over 750,000 tonnes of copper every year, and that number is climbing fast-about 7% annually. But domestic production isn't keeping up.

Since the closure of Vedanta's Sterlite plant in 2018, India has gone from exporting copper to depending heavily on imports-about 500,000 tonnes a year.

Globally, copper is being treated as a serious strategic asset. China, for example, controls nearly half of the world's smelting capacity and has secured its future supplies through long-term deals in Africa and Latin America.

The US is making moves too, using legislation like the CHIPS Act to bring copper production back home. Even Russia and Saudi Arabia are stepping in-Russia through BRICS partnerships in Africa, and Saudi via big-ticket investments like its stake in Pakistan's Reko Diq mine.

Africa, in fact, is emerging as a copper powerhouse. The Democratic Republic of Congo's Kamoa-Kakula mine alone is producing more than 139,000 tonnes a year, backed heavily by Chinese investment.

And a surprising new entry, Uzbekistan, plans to launch a massive copper mine in 2025 with a capacity of 148,000 tonnes, with an aim to nearly double that within a year.

Who's Leading the Charge in India?

Several Indian companies are stepping up to secure future copper supplies and reduce reliance on imports.

#1 Vedanta

First on the list is Vedanta.

Vedanta's parent company, Vedanta Resources, is currently working on raising about US$ 1 billion (bn) in debt funding to develop its Konkola Copper Mines (KCM) project in Zambia.

The company already owns 80% of KCM. It had earlier considered selling a part of its stake, but the latest signals suggest that it wants to hold on to the majority share. The aim is to boost copper output at KCM to 300,000 metric tonnes per year over the next five years.

Vedanta only regained control of KCM in 2024, following a long five-year legal battle after the Zambian government had seized the asset, accusing the company of underinvesting. The Zambian government still owns the remaining 20%.

But with ownership now restored, Vedanta seems determined to make up for lost time.

For more details, see the VEDANTA company fact sheet and quarterly results.

#2 Adani Enterprises

Next on the list is Adani Enterprises.

Adani Enterprises is all set to become a major player in India's copper space. The company is just weeks away from launching a massive copper smelter, one of the largest of its kind in the world. As per a media report, the first phase of the project will handle 500,000 tonnes of copper.

The company plans to eventually double this capacity to one million tonnes.

That next phase would need an additional investment of around US$ 700-800 million (m), taking the total spend on the project close to US$ 2 bn. Once fully ramped up, the facility could be among the largest copper smelters at a single location anywhere in the world.

To kick things off, the smelter will source copper concentrate from Latin America. But Adani is also scouting for supplies in Australia and Africa to build a more diversified supply base.

About 40% of the output will be used within the group itself, especially for its renewable energy and power transmission projects. Copper will also fuel growth in Adani's wires and cables business.

To fund the second phase, the group plans to use cash flows from the initial operations. However, that expansion won't be finalised until at least FY27.

For more details, see the Adani Enterprises company fact sheet and quarterly results.

#3 Hindustan Copper

Next on the list is Hindustan copper.

Hindustan Copper, India's only vertically integrated copper producer under government ownership, is quietly but steadily ramping up.

The company is currently pushing forward with a major expansion plan that aims to boost its mining capacity to 12.2 million tonnes per annum (MTPA). This will strengthen domestic production and reduce India's dependence on imported copper.

In FY24, Hindustan Copper produced 3.78 million tonnes of ore-a 13% jump from the previous year. A key part of this growth story is the Malanjkhand Copper Project (MCP) in Madhya Pradesh.

Once an open-cast mine, Malanjkhand has now transitioned smoothly into an underground operation. This shift is already showing results, with ore production rising to 22.48 lakh tonnes in FY24-nearly 61% more than in FY23.

The MCP's underground mine alone is set to double its capacity from 2.5 to 5 MTPA, marking a big leap in output. Beyond Malanjkhand, expansion efforts are also underway in Rajasthan, where plans to scale up the Khetri and Kolihan mines could triple the combined capacity.

Similarly, the Surda mine in Jharkhand is slated for an upgrade-from 0.4 to 0.9 MTPA.

Together, these moves are positioning Hindustan Copper as a key domestic force in the country's race to meet growing copper demand.

For more details, see the Hindustan Copper company fact sheet and quarterly results.

Other Players in the Race

Apart from the big three players, a new name is making its entry into India's copper landscape, JSW Group.

In January 2025, the conglomerate took its first step into the copper business by winning a Mine Developer and Operator (MDO) contract for two mining blocks in Jharkhand.

Backed by an investment of Rs 26 bn, JSW plans to bring these mines to life and build a copper concentrator plant alongside.

Once fully up and running, the project is expected to handle 3 million tonnes of ore each year, with commercial production targeted to begin in the second half of FY27.

Conclusion

Copper's rise isn't just about price - it's about purpose. In March 2025, prices surged to a record US$ 5.24 per pound, underscoring the growing strain between booming demand and limited supply.

With new mines taking over 16 years to develop and ore grades declining, the global supply chain is under pressure. By 2040, demand is projected to climb to 36.4 m tonnes, requiring a staggering US$ 2.1 trillion (tn) in investments across the value chain.

For companies already in the copper business - and those newly entering - this presents a powerful opportunity.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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