India’s Adani Group is looking overseas to strengthen its copper supply chain. The group has partnered with Chilean state-owned copper producer Codelco to explore three copper projects in Chile, potentially opening new opportunities for joint development and long-term resource access.
The two companies signed a Memorandum of Understanding (MoU) on November 21, 2025. The agreement brings together Codelco’s mining expertise and Adani’s industrial and infrastructure capabilities.
The partnership comes as India’s copper demand increases alongside investments in electricity networks, renewable energy, electric vehicles (EVs) and manufacturing. However, limited domestic mine production forces the country to depend on imported copper concentrates.
For Adani, the agreement could strengthen raw material supplies for its expanding copper business.
Adani and Codelco to Explore 3 Copper Projects
Under the non-binding MoU, Codelco and Kutch Copper Ltd (KCL), an Adani Enterprises subsidiary, will assess three copper projects in Chile.
The projects lie near established mining districts, including Sierra Gorda and Diego de Almagro, across the Antofagasta and Atacama regions.
The agreement establishes a framework for technical and legal information sharing, due diligence, and commercial discussions. Both companies will evaluate the projects before deciding whether to pursue joint development.
Codelco Chairman Máximo Pacheco said the partnership reflects the company’s commitment to public-private cooperation. Such arrangements can share investment risks, create value and support future copper production.
Adani’s CEO of Natural Resources, Vinay Prakash, highlighted the opportunity to combine the group’s infrastructure capabilities with Codelco’s mining experience. He said the partnership could help secure India’s long-term copper requirements.
The companies also highlighted the growing need for copper as electrification and renewable energy expand worldwide. Codelco’s announcement cited an outlook for global copper demand to increase by 50% by 2040.
However, the agreement does not guarantee new production or confirm future supply volumes. Project assessments and commercial negotiations will determine the next steps.
Partnership Builds on Earlier Copper Supply Deal
The latest agreement expands an existing relationship between the companies. Earlier in 2025, Codelco and Adani agreed to supply copper concentrates to Adani’s smelting facility in Mundra, Gujarat.
The new MoU takes their cooperation further by exploring opportunities at the mining stage.
Adani operates its copper business through Kutch Copper, which has developed a greenfield smelting and refining complex at Mundra. The facility has an annual capacity of 500,000 tonnes, with plans to expand it to 1 million tonnes.
The plant produces refined copper and other products, including precious metals and industrial by-products. Its coastal location also supports the import of raw materials and distribution of finished products.
In April 2025, Codelco Chairman Máximo Pacheco met Adani Group Chairman Gautam Adani in Ahmedabad to discuss potential cooperation.
India’s Copper Demand Reaches 2.1 Million Tonnes
India’s growing copper requirements provide a strong reason for the partnership.
- According to the International Copper Association India (ICA India), domestic copper demand rose 12% year-over-year to 2.1 million tonnes in FY2026, up from 1.878 million tonnes in FY2025.
Infrastructure led sectoral growth, with copper consumption rising 29% and accounting for around 22% of total demand. Automotive consumption increased 14%, while building and construction demand grew 9%.
These sectors use copper in power cables, transformers, electrical equipment, EV motors and renewable energy installations. Expanding electricity networks and data centers could also support future consumption.
The Ministry of Mines expects India’s copper demand to reach approximately 3.3 million tonnes by 2030. This growth will require additional mining, refining, recycling and international supply partnerships.
Domestic Copper Production Expands, but Imports Remain Essential
India is adding smelting and refining capacity, but domestic mining has not kept pace with demand.
According to the Ministry of Mines’ Annual Report 2025-26, the country’s installed refined copper production capacity reached approximately 1.285 million tonnes per year.
Hindalco and Kutch Copper each have an annual capacity of 500,000 tonnes. Vedanta operates 216,000 tonnes of capacity, while Hindustan Copper Ltd. (HCL) has 68,500 tonnes.
During FY2024-25, organized-sector copper cathode production reached approximately 573,000 tonnes. Hindalco contributed 402,000 tonnes, Vedanta produced 149,000 tonnes, and Kutch Copper supplied 22,000 tonnes.
However, India’s limited domestic mine output creates a shortage of copper concentrates for these facilities. As a result, expanding smelting capacity also increases the need for imported raw materials.
The country’s recent trade figures highlight this dependence. India imported 821,408 tonnes of copper concentrates between April and August 2026, up 56.8% from 523,870 tonnes during the same period in 2025.
Chile supplied approximately 366,069 tonnes, making it India’s largest supplier during the period. Peru, Brazil and Australia also contributed to imports.
- In contrast, refined copper cathode imports declined 22% year-over-year to approximately 85,048 tonnes between April and July 2026.
The difference highlights an important shift: India is increasing its domestic copper-refining capacity, but it still relies on overseas suppliers for the concentrates needed to produce refined metal.
India’s Copper Strategy Targets 2030
The government wants to strengthen domestic production and reduce import dependence. Its Copper Vision Document, released in July 2025, outlines plans to add 5 million tonnes per year of smelting and refining capacity by 2030.
The strategy also emphasizes mineral exploration, overseas resource partnerships and copper recycling.
Chile could play an important role in this effort. As one of the world’s leading copper-producing countries, it offers Indian companies access to established mining expertise and potential resource development opportunities.
For Adani, the Codelco partnership could support its expanding copper operations at Mundra. For India, it offers another opportunity to diversify copper supplies as domestic demand continues to rise.
The three projects remain under evaluation, but the partnership highlights the growing importance of overseas mining investments in India’s copper supply strategy.