Adani Enterprises' Copper Smelter's Growth Hindered by Mining Supply Issues
Thursday, 26 September 2024, 03:16
Challenges in Adani Enterprises' Copper Smelter Growth
Adani Enterprises' $1.2 billion copper smelter is set for a gradual ramp up as global copper shortage issues affect mining supply. Experts suggest the smelter's processing in Gujarat may have to contend with a tight supply of copper ore.
Supply Chain Struggles
- Adani's 500,000-ton-a-year smelter aims to become the largest custom copper processor.
- The project is crucial for reducing India's dependency on imported refined copper.
- Recent mining problems in Panama and operations cutbacks by Anglo American complicate ore availability.
The Current Market Landscape
Copper traders are concerned about how the supply imbalance will affect pricing. The ramp-up pace will be a focal topic, especially during LME Week when supply contracts are negotiated.
- Initial shipments of concentrates have begun, with contracts secured with Glencore and Hudbay Minerals.
- New smelters often encounter obstacles in securing low-impurity concentrates.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.