Context: Analysts predict copper prices will drop due to rising inventories, increased copper production, and a slow property market in China.
Key Highlights of the news
- The possible increase in growth of copper demand emanates from infrastructure, EVs and clean tech apart from consumer durables.
- Copper demand in the country has witnessed significant growth, jumping from 13.1 lakh tonnes (lt) in FY22 to 15.2 lt in FY23. This surge mirrors the country’s economic expansion, particularly in gross fixed capital formation and private consumption.
- However, per capita copper usage in India remains low at 1 kg, compared to the global average of 3.2 kg. Industry estimates suggest there will be substantial growth in usage, potentially reaching the global average by 2047.
Challenges of Copper Sector in India
- Over 50 per cent of India’s smelting capacity has shut down, leading to a transition from being a net exporter until 2018 to a reliance on imports in recent years.
- Closure of the Sterlite copper smelter in Tuticorin significantly impacted this shift.
- Indian companies are looking to acquire exploration and mining rights overseas, but nothing concrete has materialised.
Copper
- Copper is the second largest non-ferrous metal by usage, with global demand of refined copper being about 25.04 million tonnes in 2020.
- Copper is a malleable and ductile metallic element that is an excellent conductor of heat and electricity as well as being corrosion resistant and antimicrobial.
- Brownish in colour
- Found solely in igneous and metamorphic rocks.
- Usually found in metal state and hence one of the earliest metals which was exploited by humans.
- Though copper is very soft, mixing with Tin makes bronze which is harder and tougher and useful for making weapons and tools. Hence Bronze age.
- Present day industrial significance began with electricity where copper wires are very efficient in electricity transmission.
ORES of Copper
- Copper occurs naturally in the Earth’s crust in a variety of forms.
- It can be found in sulphide deposits (as chalcopyrite, bornite, chalcocite, covellite),
- In carbonate deposits (as azurite and malachite),
- In silicate deposits (as chrysycolla and dioptase) and as pure "native" copper.
- Copper is the second largest non-ferrous metal by usage, with global demand of refined copper was about 25.04 million tonnes in 2020.
INTERNATIONAL DISTRIBUTION OF COPPER
- Chile accounted for almost a third of copper mine production (largest deposit in Chuquicamata district)
- Peru accounted for 10 % of world mine production in 2020 (Cerro De Pasco region).
- In 2020, China accounted for almost 50% of world smelter production of copper, followed by Japan (8%), Chile (6%) & Russian federation (5%).
- China accounted for 41 % of world refined copper production, followed by Chile (10%), Japan (6%) and Congo (5%) in 2020.
Indian distribution of copper in India
- Largest reserves/resources of copper ore to the tune of 813 million tonnes (53.81%) are in the State of Rajasthan followed by Jharkhand with 295 million tonnes (19.54%) and Madhya Pradesh with 283 million tonnes (18.75%).
Major Copper Belts:
- Khetri Copper Belt (Rajasthan): Located in Rajasthan, this belt is one of the significant copper-producing regions in India.
- Singhbhum Copper Belt (Jharkhand): Another important copper belt, it is situated in Jharkhand.
- Malanjkhand Copper Belt (Madhya Pradesh): This belt, located in Madhya Pradesh, is mined by Hindustan Copper Limited (HCL).
- Indian Copper Complex (integral part of Hindustan Copper Limited (HCL).: The Singhbhum belt is also mined by M/s Indian Copper Complex
