JSW’s Strategic Foray into Copper, to Invest Rs. 2,600 Cr. in Jharkhand
JSW Group will be entering the Copper sector and will invest about Rs. 2,600 crore to operationalise two Copper mines and develop an associated ore concentrator plant in Jharkhand. JSW Group’s Copper business will be housed in a separate company of the group.
JSW Group has secured a 20-year Mine Development and Operator (MDO) contract for two Copper blocks in Jharkhand from Hindustan Copper Ltd. This contract is extendable by a period of 10 years.
JSW to Pump in CapEx, Hindustan Copper to Provide Technical Support
JSW will be investing the aforementioned amount in developing and operationalising the aforementioned mines in Jharkhand, whereas Hindustan Copper Ltd. will be providing technical support for the same. Hindustan Copper will also receive a percentage of the revenue generated from these mines, however, JSW did not share the said percentage.
JSW to have 3 MMTPA Copper Ore Production
Aforementioned mines upon full-scale operationalisation will provide JSW with 3 Million Metric Tonne Per Annum (MMTPA) of Copper ore production capacity. Though the timeline of achieving full operationalisation of these mines has not been shared, JSW said that these mines are expected to be partially operational by the second half (H2) of FY-27.
It is curious to note that as of now, JSW Group has not shared any plans to produce refined Copper, but only Copper concentrate.
Significance of JSW’s Move
JSW Group’s entry not only into the Copper segment but also into non-ferrous metals segment marks a strategic move for the group. Mr. Parth Jindal, MD of JSW Group’s Paints and Cement Businesses, said, “The increasing demand for Copper in sectors such as electric vehicles (EVs), renewable energy infrastructure, construction, electronics, telecommunications, and healthcare presents a significant opportunity”. He highlighted that India is a major importer of Copper concentrate and that JSW seeks to reduce the country’s dependence on imports by developing domestic Copper resources.
Importance of JSW’s Copper Foray in View of Group’s EV Plans
JSW Group is also planning to enter the Indian Electric Vehicle (EV) market on its own, and is currently in the process of finalising technology partnerships for the same. Currently, JSW holds 35% stake in a Joint Venture with MG Motor India, namely JSW MG Motor. Copper is an important component of EV manufacturing, in fact a typical EV passenger car requires up to 3.5 times the amount of Copper needed for an Internal Combustion Engine (ICE)-powered car. Therefore, having its own Copper production would give JSW Group an advantage when it starts EV manufacturing.
JSW’s Copper Foray: JSW Steel’s Performance & Steel Sector Challenges
As per a Reuters report dated 27th January 2025, JSW Steel Ltd., a flagship company of the JSW Group, has missed its quarterly profit estimates for the past 4 quarters. JSW Steel recently posted its Q3 FY-25 financials, and the company’s Profit After Tax (PAT) was down to Rs. 719 crore during Q3 of FY-25 from Rs. 2,450 crore in Q3 of FY-24. This represents a massive Year-over-Year drop of over 70%.
“Steel production in India has been hit by low prices, weak demand from top consumer China and cheap Chinese steel flooding domestic markets”, stated the Reuters report. A report by The Hindu BusinessLine dated 31st December 2024 states that China has been dumping Steel into global markets at “predatory” prices.
The report also stated that India is likely to be a net-importer of Steel in FY-25. India’s Steel imports stood at 6.5 Million Tonne against 3.2 Million Tonne of exports during April-November 2024.
Considering this and other mentioned factors, diversification into non-ferrous metals segment comes as a natural move by the JSW Group.
About JSW Group: USD 24-billion JSW Group is one of India’s major business conglomerates. JSW Group’s flagship companies include JSW Steel, JSW Energy, and JSW Cement. The group has its presence in various sectors including mining, Steel, Renewable Energy, Thermal Power, Cement, paints, B2B e-commerce, and more. The Group has over 40,000 employees and has presence in India, USA, Europe and Africa.
