India's state-owned giants are in the final stages of establishing a significant joint venture with CODELCO, Chile's national copper mining corporation and the world's largest state-owned producer. The collaboration focuses on the exploration of four copper blocks located in Chile, a move critical for bolstering India's domestic copper supply.
Securing Vital Resources for India
Copper is an indispensable commodity for India's ambitious industrial growth and energy transition goals, powering everything from electric vehicles and solar installations to defense systems and construction. Despite its escalating demand, India has historically relied heavily on imports, bringing in approximately $10.33 billion worth of copper products in 2024 alone. This dependency deepened significantly after the 2018 closure of Vedanta's Sterlite smelter, which was India's largest at the time.
However, the landscape is shifting. Mines Secretary Piyush Goyal noted that India's entire domestic requirement for processed copper might be met by domestic production this year, with potential for exports starting next year. Hindustan Copper Limited (HCL), India's sole integrated copper producer, has shown its strongest performance in years, with Metal-In-Concentrate production reaching 27,421 tonnes in FY2025-26, a 9% increase year-on-year.
The Joint Venture Details
The joint venture with CODELCO will see multiple Indian Public Sector Undertakings (PSUs) participate. Hindustan Copper Ltd. is expected to lead, with significant involvement from Coal India Limited and NTPC Mining. Additionally, other major PSUs like GAIL, Indian Oil, Oil India, and RITES are reportedly exploring potential partnerships within the JV. A delegation of PSU representatives is slated to visit Chile around April 18-19 for due diligence on the shortlisted blocks.
Strategic Partnership and Global Scale
This advanced discussion follows a Memorandum of Understanding (MoU) signed in March 2025 between HCL and CODELCO. That initial agreement focused on knowledge sharing, best practices in exploration and mining, and capacity building. While HCL holds access to about 45% of India's copper ore reserves, its annual production of 27,421 tonnes is dwarfed by CODELCO's 2024 output of 1.44 million tonnes. This partnership offers India a crucial pathway to tap into Chile's vast copper resources and expertise, ensuring a more secure supply chain for its future.