India must reform policies to attract copper exploration and mining investments.
Copper is vital for energy transition, power grids, EVs, construction, and advanced manufacturing.
Large copper reserves remain unexplored due to policy hurdles.
India should urgently go for policy reforms for attracting investment in exploration and mining of copper to ensure a favourable return on investment as the nation is heavily dependent on import of the metal, a report said.
Copper lies at the heart of the energy transition as a critical component for transforming the country's economy, from the power grid and electric vehicles (EVs) to construction and advanced manufacturing.
"Given the rising copper demand across the world and India's growing copper needs, India must explore and extract more copper, as large resources and reserves lie unexplored and hence not mined.
Policy reforms are urgently needed to attract investment in exploration and mining activities to ensure a favourable return on investment," the report by the Centre for Social and Economic Progress (CSEP) said.
The country is import-reliant for more than 50 per cent of its copper needs.
It further said that given copper's strategic significance to the country's economy, the mineral concession procedure right from auctioning to grant of statutory clearances and commencing of the mining operations needs to be streamlined in a bid to avoid any unnecessary delays and backlogs.
"Under the current mining policy regime, India's geological potential remains under explored, coupled with a complicated auction regime and delayed statutory clearances, thus leading to a lack of new investments," he said.
The sole domestic copper miner, Hindustan Copper Ltd (HCL), faces operational inefficiencies, leading to stagnant ore and concentrate production.
In India, projections indicate copper demand will increase significantly, reaching 3.24 million tonne by FY 2030 within the conventional sectors, with construction, industrial, and electricity primarily dominating copper usage. Additionally, the energy transition sector, although currently smaller, is expected to experience rapid growth.
