India's Adani, Hindalco seek Peru copper assets as demand surges
NEW DELHI - Indian conglomerate Adani and miner Hindalco Industries are exploring investments in Peru's copper sector, either through joint ventures or by taking stakes in existing mines, a senior Peruvian diplomat told Reuters.
Peru, the world's third-largest producer of copper used in sectors such as power lines, construction and manufacturing, is courting new investment as it negotiates a broader free trade agreement with India.
"Birla (Hindalco) and Adani are trying to invest in Peru. We are willing to facilitate," Javier Paulinich, Peru's ambassador to India, told Reuters in New Delhi.
Peru produced about 2.7-million metric tons of copper in 2024 and attracted $4.96-billion in foreign investment in the sector.
Anticipating a surge in demand and potential supply shortfalls, India, the world's fastest-growing major economy, has urged its mining companies to invest overseas to secure copper supply chains and manage possible disruptions, according to a government policy document published in July.
India, the world's second-biggest importer of refined copper, may have to source 91%-97% of its copper concentrate requirements from overseas by 2047, according to official estimates.
Adani sent a delegation to Peru earlier this year, Paulinich said, adding that Hindalco has initiated similar efforts.
"They are in the first stage, trying to find out opportunities," he said, referring to both Adani and Hindalco.
A top company executive told Reuters last year that Indian billionaire Gautam Adani's group would source copper concentrates from Peru and other suppliers such as Chile and Australia for its $1.2-billion copper smelter, the world's biggest single-location plant of its type.
Adani and Hindalco did not respond to Reuters emails seeking comment.
India's copper imports rose 4% to 1.2-million metric tons in the fiscal year to March 2025. Demand is expected to climb to 3-3.3 million tons by 2030 and 8.9-9.8 million tons by 2047, the government has said.
FREE TRADE PACT
India has also sought a detailed chapter on copper in its free trade negotiations with Peru to secure a fixed quantity of copper concentrate, Paulinich said, adding that discussions were still underway.
The free trade talks could conclude by May and the next round of meetings is scheduled for January, Paulinich said.
"It is in final stages," he said.
