JSW group forays into copper mining with Rs 2,600 crore investment

Sajjan Jindal group to join sector where Adani, Aditya Birla Group rival each other

Sajjan Jindal’s JSW group on Monday announced its entry into the copper business, with the winning of a Mine Operator and Developer (MDO) contract for two mining blocks in Jharkhand. The group said it will invest Rs 2,600 crore in the business.

 

“This strategic move marks the JSW group’s entry into the mining of non-ferrous metal sector in keeping with its vision to diversify and meet the increasing demand for essential metals across high-growth sectors,” JSW said in a statement.

 

Won through a competitive bidding process, the project involves operationalising the two mines and setting up of a copper concentrator plant. “On full-scale ramp-up, the mines will have an ore capacity of 3 million tonnes per annum (MTPA). The mines are expected to become operational in the second half of financial year 2026-27 (H2FY27),” the company statement said.

 

 

The MDO contract is for 20 years and further extendable for the next 10 years. The copper mines belong to Hindustan Copper, and under the terms of the agreement, JSW will be responsible for the development of mines through capital expenditure and operational management, including installation of a concentrator plant of the same capacity. In return, Hindustan Copper will provide technical support and receive a percentage of the revenue generated.

 

The business is to be housed under a separate company as part of the group, and under none of its existing listed entities.

 

JSW group scion Parth Jindal said: “Venturing into non-ferrous metals, particularly copper, is a strategic move for the group. The increasing demand for copper in sectors such as electric vehicles (EVs), renewable energy infrastructure, construction, electronics, telecommunications, and healthcare presents a significant opportunity.”

 

JSW is the latest entrant in India’s copper industry, with Adani’s Kutch Copper and Aditya Birla group’s Hindalco Industries as the two main rivals. However, the JSW group so far has not shared any plans for producing copper as a final product. Until then, with just copper concentrates, JSW will emerge more as a raw material supplier than competitor for the other two Indian conglomerates. Copper concentrate is the raw material that companies such as Hindalco and Kutch Copper use and often import, to make their final products. Anil Agarwal-promoted Vedanta’s share in India’s current copper production has dwindled with the shutdown of its Tuticorin unit in Tamil Nadu in 2018.

 

The JSW statement added: “India is currently a major importer of copper concentrate; therefore, by developing domestic copper resources, we aim to support the country’s industrial growth and reduce dependency on imports.” 

*  The mine operator and developer contract is for 20 years and extendable for next 10 years 

 

*  JSW will be responsible for the development of both the blocks 

 

*  Hindustan Copper to provide technical support and receive a percentage of the revenue generated 

 

*  Business to be housed under a separate firm as part of the group