Surge in Demand of Copper | 08 Mar 2024

Source: IE

Why in News?

As demand for copper grew by 16% yearly-on-year in FY23, policymakers and corporations have increasingly turned their attention to the critical role of copper in spurring economic growth.

What are the Key Points Related to Copper?

• About: Copper is a malleable, ductile metal known for its excellent heat and electricity conductivity. It possesses corrosion resistance and antimicrobial properties.
  • Malleability refers to the ability of a material to be pressed, or rolled into thin sheets without breaking or cracking.
  • Ductility is the property of a material that allows it to be stretched or drawn out into a thin wire without losing its strength or breaking.
• Applications: It is widely utilised in construction, consumer durables, transportation, and industrial manufacturing.
  • It is also Integral to clean energy technologies such as solar panels, electric vehicles (EVs), and energy-efficient motors.
  • It is a 100% recyclable metal (allows for a circular economy).
• Occurrence and Composition: It is naturally found in various forms in the Earth’s crust.
  • It can be found in sulphide deposits (as chalcopyrite, bornite, chalcocite, covellite), in carbonate deposits (as azurite and malachite), in silicate deposits (as chrysycolla and dioptase) and as pure native copper.
  • Most commercial copper ore deposits contain an average grade of 0.8% copper, while copper ore in India has an average copper content of around 1%.
• Mining Methods: There are two primary methods of copper mining: open-pit and underground mining.
  • Open-pit mining dominates, constituting 80% of global copper mining operations.
• Copper Deposits in India: Mainly located in Singhbhum (Jharkhand), Balaghat (Madhya Pradesh), and Jhunjhunu and Alwar (Rajasthan) districts.
  • Minor deposits are found in Agnigundala (Andhra Pradesh), Chitradurg and Hasan (Karnataka), and South Arcot (Tamil Nadu) districts.
• India’s Copper Appetite: India's demand for copper is soaring due to rising infrastructure projects, renewable energy initiatives, and urbanisation.
  • Despite this, the country heavily relies on copper imports due to limited domestic reserves.
  • To address this, the government is promoting investments in smelters and refineries while Indian companies are acquiring copper mines abroad to secure a stable supply and reduce dependence on international markets.
    • Recently, the Ministry of Mines has proposed sending an Indian industry delegation to copper-rich Zambia to discuss potential copper exploration and mining projects in the southern African country
  • Recognizing copper's criticality, the government has included it in its list of critical minerals, highlighting the need to reduce import dependence.

• Hindustan Copper Limited (HCL): Established in 1967 under the Companies Act, It is a Miniratna Category-I enterprise operating under the Ministry of Mines, Government of India.
  • It was formed to consolidate all copper exploration and exploitation projects from the National Mineral Development Corporation Ltd.
  • HCL is India's only vertically integrated copper producing company.
• Copper's Key Importance:
  • Copper as an Economic Barometer: Copper prices reflect demand/supply dynamics, monetary markets, and speculation, making it a global economic indicator.
    • Unlike sector-specific commodities, copper is integral across all economic sectors.
  • Copper for Energy Efficiency: Copper plays a vital role in promoting energy efficiency in buildings.
    • Its excellent thermal and electrical conductivity make it ideal for wiring, heat exchangers, and roofing, leading to reduced energy consumption for heating, cooling, and lighting.
    • By minimising energy losses throughout a building's lifespan, copper contributes to a more sustainable future.