The JSW Group, led by industrialist Sajjan Jindal, is diversifying its portfolio by entering the copper industry, a strategic move aligned with India’s growing demand for critical minerals in renewable energy and technology sectors. The conglomerate has committed ?26 billion ($301 million) to develop two copper mines in Jharkhand through a 20-year Mine Developer and Operator (MDO) agreement with state-owned Hindustan Copper, extendable by an additional decade. The mines, expected to partially commence operations by the second half of FY 2026–27, aim to achieve an annual ore capacity of 3 million tonnes at full ramp-up. A copper concentrator plant is also planned to streamline operations.

Smelter Ambitions and EV Integration

Beyond mining, JSW is investing approximately ?120 billion to establish a 500,000 metric ton (MT) copper smelter in Odisha by 2028–29. This facility, sourcing copper concentrate from Peru, Chile, and Hindustan Copper, will scale up to 1 million MT by 2033–34. The smelter will directly supply copper for JSW’s upcoming electric vehicle (EV) and battery manufacturing projects, positioning the group to capitalize on India’s green energy transition. Pankaj Kumar, CEO of JSW’s copper division, is set to negotiate concentrate supply deals during a visit to Chile, underscoring the project’s global supply chain integration.

Competitive Landscape and Domestic Demand

JSW’s entry intensifies competition in India’s copper market, dominated by the Aditya Birla Group’s Hindalco Industries—operator of the world’s largest single-location smelter—and the Adani Group, which recently commissioned a $1.2 billion smelter in Gujarat. Meanwhile, Vedanta’s Sterlite Copper plant in Tamil Nadu, shuttered since 2018 due to environmental disputes, previously contributed 400,000 MT annually. Its closure has exacerbated India’s reliance on imports, which now account for 500,000 MT of the 750,000 MT annual consumption. Domestic refined copper production, currently at 555,000 MT, falls short of demand, a gap projected to widen as India’s push for clean energy and EVs could double copper demand by 2030.

Strategic Partnerships and Policy Alignment

Under the MDO agreement, Hindustan Copper will provide technical expertise and receive a revenue share, while JSW manages mine development. This partnership aligns with India’s 2023 designation of copper as a critical mineral, emphasizing self-reliance in materials vital to decarbonization. JSW’s expansion underscores its broader diversification beyond steel into energy, cement, paints, and automotive sectors, reflecting a calculated bet on India’s industrial and green energy future.

By integrating mining, smelting, and downstream manufacturing, JSW aims to secure a vertically integrated supply chain, reducing import dependency and positioning itself as a key player in India’s transition to sustainable technologies.

This information is for educational purposes only and does not constitute investment advice. Investors should conduct independent research before making financial decision

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