Government-owned Hindustan Copper Ltd. is assessing an acquisition of two copper mines in Chile in a joint venture with Codelco. The talks are said to be in advanced stages for one of the mines, according to sources.
Codelco is a Chilean state-owned mining company and the largest copper mining company in the world. Sources suggest the company has offered five blocks to Hindustan Copper.
An HCL team will be visiting Chile in December to assess some of the untapped copper blocks on offer.
The government is assessing a substantial stake in the two mines currently. The potential investment and stake of Hindustan Copper in the JV is under assessment.
In June, Hindustan Copper signed a memorandum of understanding for knowledge sharing and technology exchange with Codelco.
Copper Rush
Copper prices have seen an uptick this year on the back of various global factors, including Trump tariffs and supply constraints. The mineral is a key commodity for the global green transition. Electric vehicles, wires, rods, and machines are major sources of demand for the industrial metal.
The frenzy over copper in India has been further accentuated by Hindustan Copper's recent announcement of a capacity ramp-up, with the company looking to increase its ore output threefold from 3.47 million tonnes per annum to 12.2 million tonnes by fiscal 2031.
The government has nudged miners to go for exploration within and outside the country.
According to independent market analyst Ambareesh Baliga, Hindustan Copper could potentially deliver multi-bagger returns over the next couple of years.
"The demand for copper is going to increase, given the AI and data centre boom. There have been talks that copper could be the new gold, from an industrial point of view," he told NDTV Profit.
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