Ports-to-energy conglomerate Adani Group has forayed into copper manufacturing with tying up of finances from public sector lenders for a 1 million tonnes a year unit at Mundra in Gujarat.
"Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), is setting up a greenfield copper refinery project for production of refined copper with 1 million tonnes per annum in two phases," the company said in a statement.
For the phase-1 capacity of 0.5 million tonnes, KCL has achieved financial closure through a syndicated club loan for the greenfield copper refinery project at Mundra, Gujarat. It has executed "financing documents with the consortium of banks led by State Bank of India (SBI). The other consortium members are Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra," the statement said.
The consortium of banks has sanctioned and signed an agreement for the entire debt requirement of Rs 6,071 crore for the Phase-1 of the KCL Project. Vinay Prakash, Director, Adani Enterprises Ltd, said the project has requisite technology tied up and the construction works at the site are progressing well and is scheduled to commence production during the first half of CY 2024.
"It will be one of the largest copper refinery complexes in the world, with benchmark ESG performance standards, leveraging state-of-the-art technology and digitilization. This financial closure enables us to accelerate the project and signifies the commitment of the Adani Group to mobilise the required resources and complete the project within the set timelines," he said. KCL will be part of the materials, metals and mining vertical of the Adani group.
SBI Capital Markets Ltd acted as the financial advisor and Desai & Diwanji Advocates acted as the lenders' legal counsel. Saraf and Partners Law Offices acted as the legal advisor to KCL. KCL was incorporated on March 24, 2021, with the objective to undertake copper business - related activities such as the manufacture of copper cathodes and copper rods and associated products.Adani Enterprises Limited (AEL) is the incubation arm of Adani group. Adani Ports & SEZ Limited, Adani Transmission Limited, Adani Power Limited, Adani Green Energy Limited, Adani Total Gas Limited and Adani Wilmar Limited have been incubated in AEL.