Vedanta to invest $451 million to double copper capacity
Copper accounts for over 30 per cent of Vedanta's total revenue. Photograph: (Getty)
PTI New Delhi, India Sep 05, 2016, 10.41 AM (IST)
Mining conglomerate Vedanta will invest up to $451 million (3000 crore Indian Rupees) in copper operations in India to double the capacity to 8 lakh tonnes by 2019, making the firm India's largest producer of the metal.
The firm led by billionaire Anil Agrawal has a custom smelter, a refinery, phosphoric acid plant, sulphuric acid plant, copper rod plant and three captive power plants at Tuticorin in southern Indian state of Tamil Nadu as well as a refinery and two copper rod plants at Silvassa (Dadra and Nagar Haveli).
"We will invest 2,500-3,000 crore Indian Rupees in our copper operations to double the capacity from 400-kilogramme tonnes at present. This will happen by 2019," CEO of Vedanta's copper business R Ramnath told PTI.
Copper, which accounts for over 30 per cent of Vedanta's total revenue, is an important industrial metal with extensive use in sectors such as power, telecom, consumer durables and electrical goods.
The company has been granted around 250 acres of land by the Tamil Nadu state government in the special economic zone area in Titucorin, where it will set up another smelter of 400 kilo tonnes capacity, he added.
After the addition of this facility, Vedanta will become India's largest copper producer.
At present, India has a total copper capacity of 10 lakh tonnes, of which Hindalco accounts for 5 lakh tonnes followed by Vedanta (4 lakh tonnes) and state-run Hindustan Copper (1 lakh tonnes).
In April-June quarter of 2016-17, Vedanta's revenue from copper business stood at $696 million, lower by 21 per cent year-on-year and 15 per cent sequentially.
Production from the Tuticorin smelter stood at 100,000 tonnes of cathodes during the June quarter.
The company said it expects the Tuticorin smelter to produce 4,00,000 tonnes of cathodes in 2016-17 fiscal, ending March 2017.
(1 crore = 10 million ; 1 lakh = 100,000)