Athira Sethu
Kochi, 30 September 2025
Hindustan Copper, India’s sole fully integrated copper producer, opines that copper supplies in the world will continue to be tight, holding up prices until 2026. The reason, says the Chairman and Managing Director of the company, Sanjeev Kumar Singh, is primarily because of large-scale disruption of copper mines globally, such as the shutdown of the Grasberg mine in Indonesia. The disruptions coupled with rising demand are casting strain on the world copper market.
One of the key drivers for copper demand is increasing usage of copper in artificial intelligence (AI) data centres. With the increasing demand for AI technology, there is an equivalent increase in the demand for copper, which is a major material used in building such data centres. This added demand, coupled with the scarce supply, will ensure that copper prices remain stable at current levels, Singh said.
Hindustan Copper’s cost of production is around $5,000 to $6,000 per tonne, averaging about $5,500 per tonne. The company is well-placed in a tough market with this cost structure. While higher copper prices can translate into more revenue, the company is concentrating on optimizing its operating efficiency.
For the current year, Hindustan Copper intends to produce more than 4 million tonnes of ore and over 30,000 tonnes of copper metal in concentrate (MIC). The company has some challenges, including a longer than normal monsoon season which can impede production.
To the future, Hindustan Copper has huge expansion plans on the anvil. The company is going to triple its mining capacity from 4 million tonnes to 12 million tonnes by FY31. The expansion would require a huge investment of ₹2,000 crore and would be funded out of the company’s own funds. Singh believes that by FY27, the company’s production will witness a massive ramp-up as erstwhile closed mines would start coming back and become fully operational.
Aside from its copper operations, Hindustan Copper is also looking to explore rare earth minerals. The company has entered into memorandum of understanding (MOUs) with other public sector undertakings, including Oil India, to prospect for minerals like graphite, vanadium, and potash. The diversification into rare earth minerals would help the company further consolidate its position in the international market.
