Adani Enterprises subsidiary Kutch Copper is advancing with its greenfield copper refinery project in Mundra, Gujarat, according to a report by The Economic Times (ET).

The $1.2bn facility, poised to be the world's largest single-location copper manufacturing plant, will commence its first phase by the end of March.

It is expected to reach a full one million tonnes per annum (mtpa) capacity by FY 2029.

Set to bolster India's copper production capabilities, the project will significantly reduce the country's reliance on imported copper and support its energy transition efforts.

According to sources familiar with the development, the first phase of the project will have a capacity of 0.5mtpa.

For phase one, Kutch Copper secured financial backing through a syndicated club loan completed in June 2022.

The plant is designed to produce not only copper cathodes and rods but also byproducts such as gold, silver, selenium, and platinum.

The integrated complex will also manufacture sulphuric acid, a crucial raw material for various industries, including fertilisers and chemicals. India currently imports around 2mtpa of sulphuric acid.

This project's Phase I will produce 500,000t of refined copper each year, along with nearly 25t of gold, 250t of silver, 1.5mt of sulphuric acid, and 250,000t of phosphoric acid.

Its second phase will double the capacity to 1mtpa.

The company is engaged in long-term supply agreements for copper concentrate, which, along with its strategic location and integrated value chain, is anticipated to position Kutch Copper as one of the most sustainable and lowest-cost producers globally, stated ET.

This development comes as Vedanta seeks to reopen its 400,000t copper plant in Tuticorin, Tamil Nadu, and competes with Hindalco Industries, which currently operates the country's largest copper smelter with a capacity of 0.5mt.

Last April, Adani Group secured a government auction of four coal blocks at among the lowest prices in March, despite the stock rout triggered by market manipulation allegations in the Hindenburg report.