JSW Group of Sajjan Jindal announced to enter the copper business after receiving the bid of the Mine Operator and Developer (MDO) deal for two mining blocks in Jharkhand today. The group has said that it will invest Rs 2,600 crore on it. JSW said in a statement, “This strategic step is in line with the JSW group’s perspective of meeting the increasing demand for essential metals in rapidly growing areas.”
The project, achieved through competitive bidding process, includes operating two mines and installation of copper concentrator plant. The company said in the statement, ‘The ore capacity of the mines will be 3 million tonnes annually when it is fully operational. These mines are expected to be operational by the second half of FY 2026-27.
The MDO agreement is for 20 years. It can be extended 10 years. Copper mines belong to Hindustan Copper and will be responsible for the development of the mines through capital expenditure and operational management, including the creation of JSW equal capacity, including the creation of JSW. Instead, Hindustan Copper will provide technical assistance and will get a part of income. This business will be under a separate company which will be part of the group and no currently listed company will be included in this business. JSW Group successor Partha Jindal said, ‘Layer metals, especially in the field of copper business, is the enthusiast step of the JSW group. There are great opportunities in this business with increasing demand for copper in areas such as electric vehicles (EVs), renewable energy infrastructure, construction, electronics, telecommunications and health care. ‘
JSW is a new company entering India’s copper industry. In this, Adity’s Kutch Copper and Hindalco of Aditya Birla Group are already prominent rival. But the JSW Group has not yet shared any plan to produce copper as the final product. Anil Aggarwal’s stake in India’s current copper production of India has reduced due to the closure of Tamil Nadu’s Tuticorin unit in 2018. Jindal has said in his statement, ‘Currently India is the main importer of copper concentrations. Therefore, by developing indigenous resources of copper, our goal is to emphasize the industrial development of the country and reduce dependence on imports.