Sterlite Eyes Copper Mines Abroad

Sterlite Industries, the $1 billion group with diversified interests in aluminium, copper and fibre optics, is planning to acquire mines abroad to meet its raw material requirement for Sterlite Copper, its copper smelter plant in Tuticorin, Tamil Nadu.

Navin Agarwal, director of Sterlite, said, "We are working towards complete reliability of supply of raw materials for our plants in India and are currently evaluating few mines in Australia and the US for possible acquisitions."

Sterlite has already acquired two sick and abandoned mines in Australia (Queensland and Tasmania) at an approximate investment of around $43.5 million.

"These two mines meet 50 per cent of Sterlite Copper's raw material requirement. Our endeavour with the planned acquisitions was to achieve complete reliability of supply," said Agarwal.

However, he added that these mines would operate separately and develop it as an individual business unit. At present, Sterlite Copper meets its remaining raw material requirements by importing from the South American markets.

Asked about the investment required for such acquisitions, he said it depended on the type and quality of mines, and added that the group, with comfortable cash position, would be able to meet it through internal accruals.

In the last five years Sterlite had increased the capacity at Tuticorin copper smelter from 60,000 tonne per annum (TPA) to 1,60,000 TPA, and is evaluating further expansion. "As the present production capacity is able to meet the domestic industry's copper requirements, growth can come only from gaining market share and international expansion," Agarwal said.

The Tuticorin unit has received ISO 14001 for engineering management systems and OSHAS 18001 for occupational health and safety systems from Det Norske Veritas, Netherlands.