Whalesbook
Mines Set for Major Output Jump
The planned output increase will stem from Hindustan Copper's mines in Ghatshila, Jharkhand, and Khetri, Rajasthan, according to Managing Director Sanjiv Kumar Singh. He told ET that the company projects ore production of roughly 4.7 million tonnes for 2026-27, marking a 28-30% rise from the previous fiscal year. This level of production could represent the company's "best-ever year".
AI, EVs and Grids Driving Copper Demand
Singh identified AI infrastructure as the fastest-growing driver of global copper demand. He pointed to Google's Vizag data center needing 65,500 tonnes of copper as a key example of this rising need. Additionally, major upgrades to power transmission grids in China and India are anticipated to significantly increase copper consumption.
Global Supply Squeeze Pushes Prices Up
Global copper production has largely remained flat compared to last year. This is compounded by mining operations facing declining ore grades. This supply-demand imbalance is expected to keep prices high. Further supply restrictions come from geopolitical events, such as the Iran-US situation impacting sulfuric acid shipments crucial for copper processing. Operational issues, like a recent accident at Indonesia's Grasberg mine that delayed production by six months, also limit supply. Singh noted that these supply constraints naturally drive prices higher.