Chennai (Tamil Nadu) [India], July 22 (ANI): The closure of the Sterlite copper smelter plant in Thoothukudi, Tamil Nadu, has put India at the mercy of China, said Vedanta, the mining giant that owned the plant.
“The closure of the 4 lakh metric tonnes per annum (MTPA) Sterlite copper smelter plant in Thoothukudi, Tamil Nadu, in May 2018, contributing nearly 36 pc of the total refined copper demand in India, has put the country at the mercy of China, a hostile neighbour for imports,” said Vedanta in a press release issued on Monday.
The copper smelting plant was permanently shut down on the orders of the Tamil Nadu government in 2018 on the grounds of pollution.
The company said that copper has assumed far greater importance and value for the developing world.
“Copper has been aptly described as the bellwether of India’s growth story because of its growing demand across industries like construction, infrastructure, power, transportation, consumer durables and green technologies. Copper is also used in hospitals for making surgical instruments such as scalpels and clams that cut through tissues without damaging blood vessels or nerves,” the press release said.
The company claimed that the closure was also a big blow for India’s strategy of Atmanirbhartha in critical raw materials. It has also exposed Indian companies to the vagaries of global price volatility and disruptions in supply chain because of geopolitical tensions, the company said.
“China’s increasing dominance across the copper’s entire value chain is reflected in its growing smelter capacity, which expanded by 8,68,000 tonnes to 12.6 million tonnes in 2022-23 and is expected to rise to another 4,57,000 tonnes by 2024, accounting for 47% of the total global capacity. Moreover, it has recently acquired through MMG Limited Botswana’s Khoemacau copper mine and invested heavily in Jinchuan Groups in Chile’s Antofagasta to shore up its ore supply, according to a Wood Mackenzie report,” the press release said.
The company said that not only has the production of refined copper taken a massive hit, the productivity of sulfuric and phosphoric acid, gypsum, etc, from downstream industries has fallen drastically. It has forced India to import these chemicals from countries like Japan, South Korea and Philippines.
“The growing demand-supply mismatch will also adversely impact India’s ambitious decarbonisation strategy. This shortfall will hurt the interests of the domestic electric vehicle (EV) manufacturers, allowing global automobile players to garner a higher share of the Indian domestic market at the cost of the local players.
“Similarly, those producing solar modules, wind turbines, battery storage systems, and other products, will either be forced to depend on expensive imported copper or cut down on their production targets.
The closure of the Thoothukudi plant also opens the country’s lucrative copper market to both international players in the absence of strong domestic competition.
“It will also allow them to ramp up capacities, enter new markets, etc. It has also allowed other domestic players to expand into different areas without much competition,” the press release said. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
