Chile’s national copper company, Codelco, will supply copper concentrates to the Adani Group's $1.2bn (Rs102.42bn) smelter, known as Kutch Copper, in Gujarat, India, reported Reuters.

The partnership was solidified during a meeting between Codelco's chairman, Maximo Pacheco, and Adani Group chairman Gautam Adani at the conglomerate's headquarters in Ahmedabad, Gujarat.

Codelco is expected to commence supplies to the smelter this year.

Kutch Copper Limited (KCL), a subsidiary of Adani Enterprises, is developing the one million tonne per annum (mtpa) copper complex in Mundra, Gujarat, to reduce import reliance.

This move comes as India's copper imports have risen sharply following the closure of Vedanta's Sterlite Copper smelter in 2018, which previously produced around 400,000 tonnes of copper annually.

Currently, Hindalco Industries, the metals flagship of the Aditya Birla Group, and state-run Hindustan Copper are the only copper producers in India.

The smelter, which has been operational for a year, is the biggest single-location plant of its type in the world. Last month, the smelter entered into a joint venture to manufacture wires and cables.

The facility will source concentrates from Chile, among other countries, as stated by its executives to Reuters.

In a separate development, Codelco has signed a preliminary agreement with Hindustan Copper to cooperate on mineral exploration and processing.

The company also recently secured a loan of $666m ($630.23m) from the Japan Bank for International Cooperation and a private financial institution.

These funds are earmarked to ensure the secure importation of copper concentrates from Codelco to Japanese manufacturers amidst a surge in global copper demand.

Codelco is reportedly also in discussions with Saudi Arabia over potential joint investments in copper.