Copper

Source: IE

Context: India is confronting a significant copper shortage due to the implementation of the Quality Control Order (QCO) on refined copper, effective December 1, 2024.

• Japan which accounts for 80% of India’s copper imports are still awaiting certification, leading to a potential supply disruption.

About Copper:

• Copper is a reddish-brown, malleable, and ductile metal known for its excellent thermal and electrical conductivity.

• Properties: It is corrosion-resistant and possesses antimicrobial qualities, making it indispensable in electrical wiring, electronics, and various industrial applications.

• Major mines in India: Malanjkhand Mine: Located in Madhya Pradesh, it’s the largest copper mine in India, producing approximately 17.62 thousand tonnes in 2023. Banwas Mine: Situated in Rajasthan. Surda Mine: Located in Jharkhand.

• Malanjkhand Mine: Located in Madhya Pradesh, it’s the largest copper mine in India, producing approximately 17.62 thousand tonnes in 2023.

• Banwas Mine: Situated in Rajasthan.

• Surda Mine: Located in Jharkhand.

• India’s Copper Imports: Due to limited domestic production, India imports 30-40% of its refined copper needs.

• Reasons for Copper Shortage:

• Quality Control Order (QCO): BIS certification for imported refined copper has halted imports, risking shortages.

• Sterlite Closure: Tamil Nadu’s Sterlite smelter, once producing 36% of India’s copper, remains shut.

• Impacts on India Renewable energy delays: Copper scarcity threatens solar, wind, and EV projects, crucial for India’s net-zero goals by 2070. Higher industrial costs: Increased copper prices escalate production costs for wires, electronics, and infrastructure, affecting industries nationwide. Import dependency risks: Heavy reliance on imports exposes India to global price fluctuations and geopolitical uncertainties. Slow infrastructure development: Delays in copper supply hamper progress on smart cities, EV networks, and energy transition projects.

• Renewable energy delays: Copper scarcity threatens solar, wind, and EV projects, crucial for India’s net-zero goals by 2070.

• Higher industrial costs: Increased copper prices escalate production costs for wires, electronics, and infrastructure, affecting industries nationwide.

• Import dependency risks: Heavy reliance on imports exposes India to global price fluctuations and geopolitical uncertainties.

• Slow infrastructure development: Delays in copper supply hamper progress on smart cities, EV networks, and energy transition projects.

Insta Links:

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