Hindustan Copper Chairman and Managing Director Anupam Misra anticipates that global benchmark copper prices will remain above $14,000 per tonne due to a persistent demand-supply gap. Currently, global demand stands at about 28 million tonnes, outpacing supply by around 23 million tonnes. At the time of reporting, benchmark copper prices were trading at $14,508.85 per tonne, slightly higher than the previous close.
Misra emphasized that Hindustan Copper's strong cost discipline will support its expansion plans. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin exceeds 50%, meaning costs are below 50% of revenue. This financial cushion ensures profitability even if copper prices decline. Hindustan Copper is planning a capital expenditure of over ₹7,000 crore in the next five to six years to expand its mining capacity to 12.2 million tonnes per annum (MTPA).
The expansion will focus on modernising and increasing capacity at the Khetri, Kolihan, and Malanjkhand mines. Misra expects unit costs to decrease further as production scales up. The company has set intermediate milestones to ensure the expansion programme stays on track by 2030. Exploration efforts to bolster India's copper resilience are primarily led by public-sector entities, with limited private-sector involvement.
Hindustan Copper is also exploring the acquisition of four copper blocks in Chile, the world's top copper producer. However, regulatory requirements on both sides may delay the process. Misra noted that forming a joint venture in India and Chile could diversify risks and involve other partners.