India Eyes Copper Security: Adani & Hindalco Explore Investments in Peru

According to reports, Adani Group and Hindalco Industries are exploring investment opportunities in Peru’s copper sector, either through:

• Joint ventures, or
• Acquiring stakes in existing copper mines.

This aligns with India’s broader policy push to secure critical mineral supply chains by encouraging state-owned and private firms to invest overseas.

Peru: A Global Copper Powerhouse

• Peru is the world’s third-largest producer of copper.
• Copper is essential for sectors such as power infrastructure, EVs, renewables, and manufacturing.
• Peru produced ~2.7 million metric tonnes of copper in 2024.
• The country attracted $4.96 billion in foreign investment in its copper sector last year.

Peru is also negotiating a Comprehensive Free Trade Agreement (FTA) with India, and is seeking fresh investment as part of its outreach strategy.

Why India Needs Overseas Copper Assets

Import Dependence Rising

• India is the second-largest importer of refined copper.
• By 2047, India may need to import 91%–97% of its copper concentrate requirement.
• Domestic mining output has not kept pace with rising demand.

Copper as a Critical Mineral

• The Government of India has identified 30 critical minerals crucial for national security, energy transition, and economic growth.
• Copper—key to electrification, renewable energy, EV manufacturing, grid expansion—is one of them.

Policy Direction

India has urged its public and private mining companies to:

• Invest abroad
• Secure long-term offtake agreements
• Diversify supply chains to prevent disruptions

This is part of India’s strategy to mitigate geopolitical risks, supply bottlenecks, and price volatility.

Strategic Significance

• Investment in Peru could insulate India from global copper shortages.
• It strengthens India’s participation in the global energy transition metals ecosystem.
• An India–Peru FTA could lower tariffs, facilitate investments, and reduce costs for Indian companies.
• It supports India’s long-term goal of critical mineral self-reliance and industrial resilience.

Source: The Hindu