Hindustan Copper’s Chairman and Managing Director Anupam Misra anticipates that global benchmark copper prices will remain above $14,000 per tonne. This outlook is driven by a significant demand-supply gap, with current demand at 28 million tonnes against a supply of 23 million tonnes. At the time of reporting, benchmark 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 stability ensures profitability even if copper prices decline, allowing the company to proceed with a ₹7,000 crore capital expenditure program over the next five to six years.
The expansion aims to increase mining capacity to 12.2 million tonnes per annum (MTPA) through modernization and capacity additions at its Khetri, Kolihan, and Malanjkhand mines. Misra expects unit costs to decrease as production scales up. The company has set intermediate milestones to ensure the expansion stays on track by 2030.
Misra also highlighted that exploration efforts in India are primarily led by public-sector entities, with limited private-sector participation due to the long gestation periods of mining projects. Hindustan Copper is exploring the acquisition of four copper blocks in Chile, the world’s largest copper-producing country, though regulatory requirements may delay the process.