Mumbai: India is stepping up efforts to secure copper supplies from overseas as demand for the metal continues to rise and domestic production remains far below the country's needs. State owned Hindustan Copper is in talks with Chilean copper giant Codelco to explore mining opportunities in Chile and bring more copper concentrate into India.
Under the developing plan, Hindustan Copper could source copper concentrate from Codelco's operations in Chile and supply it to major Indian companies including Hindalco and Adani's Kutch Copper. Discussions are also under way on a possible partnership between Hindustan Copper and Codelco for copper mining and marketing. The proposal is still being discussed and no final joint venture agreement has been announced.
The move comes as India faces a growing gap between copper demand and domestic supply. India currently produces about 573,000 tonnes of refined copper a year, while domestic demand is around 1.8 million tonnes. The country therefore relies heavily on imported copper raw materials to meet the needs of its industries. India's dependence on imported copper concentrates could rise to between 91 percent and 97 percent by 2047 if domestic mining does not expand significantly.
Copper has become increasingly important for India's economic growth. The metal is widely used in electricity networks, power equipment, construction, electronics, electric vehicles and renewable energy projects. The rapid expansion of data centres and other modern infrastructure is also expected to increase demand.
For India, securing copper from Chile is therefore not simply a commercial decision. It is increasingly being viewed as part of a wider effort to protect the country's supply of important minerals.
Hindustan Copper has already taken several steps towards entering the Chilean mining sector. In May, the company disclosed that it had signed a non disclosure and confidentiality agreement with Codelco and appointed a transaction adviser to explore opportunities in Chile. A team from Hindustan Copper and its partners also visited several copper exploration sites in Chile between April 20 and April 30 to study potential mining blocks. The company said the work was still under way.
The possible partnership could involve other Indian state owned companies as well. Coal India and NTPC Mining have been mentioned as potential participants in the broader effort to secure overseas copper resources. The plan could eventually give Indian companies a direct role in mining projects while also creating a long term supply route for copper concentrate.
Hindalco is an important part of the proposed supply arrangement because it has a large copper business in India. Adani's Kutch Copper operation is also expanding its role in the country's copper industry. Codelco has already developed a relationship with Adani Group, including cooperation linked to copper supplies and exploration opportunities.
The proposed Chile arrangement, however, will not provide an immediate solution to India's copper shortage. Mining projects require years of exploration, approvals, construction and development before commercial production can begin. Sources cited by Reuters said it could take about 10 years before new mining operations under the proposed arrangement begin producing copper concentrate.
That long timeline makes India's domestic expansion plans equally important. Hindustan Copper has been working to increase its own mining capacity, with the company targeting much higher ore production in the coming years. The company has also been looking at greater overseas participation as part of its wider growth strategy. Recent reports said Hindustan Copper aims to increase ore production to about 12 million tonnes a year by 2029.
The company's financial position has also strengthened. Hindustan Copper reported a sharp increase in profit for the first quarter of the 2026 to 2027 financial year. Its profit after tax rose to about Rs 353 crore, up 163 percent from the same period a year earlier, while revenue increased to about Rs 937 crore.
The Chile discussions also come as India seeks stronger relationships with countries that have large reserves of critical minerals. The government has been looking at overseas mining partnerships and supply agreements as competition for important raw materials grows around the world.
Chile is especially important because it is one of the world's leading copper producing countries and Codelco is one of the biggest copper producers globally. A stronger relationship with Codelco could therefore give Indian companies access to a major source of copper while helping them gain experience in international mining.
India is also considering copper related provisions in a possible trade agreement with Chile. Such an arrangement could potentially help Indian companies obtain more reliable supplies of copper concentrate in the future.
For now, the proposed Hindustan Copper and Codelco partnership remains a work in progress. There is no completed mining joint venture yet, and several commercial and technical details still need to be settled.
As India expands its electricity networks, manufacturing, electric vehicle industry, renewable energy projects and digital infrastructure, demand for copper is expected to remain strong. Securing reliable supplies from Chile could become an important part of India's effort to meet that demand and reduce the risks created by its heavy dependence on imported copper raw materials.