Strengthening Quality Control in India’s Copper Sector
The Indian government is taking significant steps to enhance the quality control framework for the non-ferrous metals sector, particularly focusing on copper. On August 31, 2023, the Ministry of Mines introduced the Copper (Quality Control) Order. This initiative aims to ensure that copper products meet specific quality standards, thereby boosting the overall integrity of the industry. Alongside the Copper QCO, similar orders for Aluminium and Aluminium Alloys and Nickel were also announced. Initially, these orders were set to take effect three months after their notification, with a deadline of November 30, 2023. However, due to requests from industry stakeholders and the current supply situation, the implementation date has been extended multiple times, with the latest deadline set for December 1, 2024.
Extended Implementation Timeline
The Ministry of Mines has shown flexibility in responding to the needs of the industry. After receiving feedback from various stakeholders, including user sector industries, the implementation of the Copper QCO was postponed. The first extension was granted on November 3, 2023, pushing the deadline to June 1, 2024. This was followed by another extension on May 3, 2024, which further delayed the deadline to December 1, 2024. The Ministry has actively engaged with industry representatives through a series of meetings held throughout 2023 and 2024. These discussions aimed to address concerns and ensure a smooth transition to the new quality control standards. The Secretary of Mines also met with the Director General of the Bureau of Indian Standards (BIS) to facilitate this process. As a result, suppliers of copper cathodes, both domestic and foreign, have been given a total of 15 months to obtain BIS certification.
Import Dynamics and Market Sources
In the fiscal year 2023-24, India imported approximately 363 thousand tonnes of refined copper cathodes, valued at around ₹24,552 crore. Japan has emerged as the dominant source, supplying about two-thirds (67%) of India’s refined copper imports. In terms of quantity, Japan accounts for nearly 69% of these imports. Following Japan, Tanzania and Mozambique are also significant contributors, providing 18% and 5% of the imports, respectively. The reliance on imports highlights the need for robust quality control measures to ensure that the materials entering the Indian market meet the required standards. As the domestic production capabilities improve, the government aims to reduce this dependency on foreign suppliers.
Domestic Production and Certification Progress
The Kutch Copper Refinery, operated by Adani, has recently commenced production. However, officials indicate that reaching full capacity will take additional time, with expectations set for February to March 2025. Once operational at full capacity, India is projected to achieve self-sufficiency in refined copper, significantly reducing its reliance on imports. Currently, seven applications for BIS certification have been submitted by Japanese smelters, with one smelter, Sumitomo Metal Mining Co. Ltd., already receiving approval. Two more licenses are expected to be granted shortly. On the domestic front, four suppliers—Adani’s Kutch Copper Ltd, Hindalco Industries Ltd, Gujarat Victory Forgings Pvt Ltd, and Vedanta Ltd—have obtained BIS certification. Additionally, four foreign suppliers, including one each from Japan and Austria, and two from Malaysia, are also certified. With the anticipated approvals, the market is expected to have a stable supply of copper cathodes, alleviating any potential supply constraints.
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