Hindustan Copper sees tight global supply, stable prices amid mine disruptions

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Global copper supply is expected to remain constrained, keeping prices firm through 2025 and 2026, according to the head of India's sole integrated copper producer. In an interview with CNBC TV18, Mr. Sanjeev Kumar Singh, Chairman and Managing Director of Hindustan Copper, attributed the tight supply situation to major disruptions, including the closure of the Grasberg mine in Indonesia, and rising global demand.

Mr. Singh noted that the increasing use of copper in artificial intelligence (AI) data centres is a significant demand driver that will help hold prices at current levels. He provided insight into the company's cost structure, stating that its cost of production is competitive and will remain in the range of $5,000 to $6,000 per tonne, with an approximate average of $5,500 per tonne.

While external factors like higher prices will naturally boost revenues, the company is focused on maintaining its operational efficiencies. For the current fiscal year, Hindustan Copper aims to produce over 4 million tonnes of ore and more than 30,000 tonnes of metal in concentrate (MIC), though it faces challenges from an extended monsoon season. Looking ahead, the company has ambitious expansion plans to triple its mining capacity from 4 million tonnes to 12 million tonnes by the financial year 2031. Mr. Singh expects a substantial jump in production from FY27 onwards as reopened mines become fully operational. This expansion, involving a capex of ₹2,000 crore, will be financed through internal accruals.

The company also has board approval for a Qualified Institutional Placement (QIP) as an enabling resolution. Beyond copper, Hindustan Copper is actively pursuing opportunities in rare earth minerals, having signed memorandums of understanding (MOUs) with several public sector undertakings, including Oil India, to explore for minerals like graphite, vanadium, and potash.