DEMAND, AVAILABILITY AND MARKET OPPORTUNITIES FOR COPPER IN INDIA by

ICDC

Dr. D. De Sarkar Chief Executive Officer Indian Copper Development Centre

INDIAN COPPER INDUSTRY BACKGROUND

• Long history of • • • • ICDC

•

over 7,000 - 10,000

years Challenges from alternate metals and materials Challenges from new technologies Changes in life-style Evolution of newer products and amenities Liberalisation & Globalisation

HISTORICAL BACKGROUND Pre-Independence Era COPPER PRODUCTION

1920’s : Mining & Smelting started at Ghatsila by Cordoba Copper Co. ( later renamed as Indian Copper Complex ). 1928 : ICC commenced production of Fire Refined Copper (8000 tpa capacity)

FABRICATION CAPACITY

- Traditional small scale units making utensils, artwares and hardwares - Captive units (1920’s) to cater to defence and Railway Workshops

CONSUMPTION ICDC

- No precise data available - Only 25,000 tonnes in 1948

ESTIMATED TOTAL COPPER CONSUMPTION* Year 1956 1970 1980-81 1990-91 2000-01 2008-09 2009-10

Quantity (tonnes) 33,800 55,000 117,363 207,170 484,000 650,000 > 720,000

* Total consumption of copper include Primary ICDC

Refined Copper (Cathode + CCR + Wire Bars) + Imported Copper & Copper Alloy Semis + Secondary Copper (including scrap)

QUANTITY (Tonnes)

TOTAL COPPER CONSUMPTION 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1956

1970

1980-81 1990-91 2000-01 2008-09 2009-10

ICDC YEAR

MAJOR END USE SECTORS
Electrical, Electronics & Telecom
Transport
Process Industry
General Engineering
Consumer Durables

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Building & Construction, HandicraftS, etc.

ESTIMATED SECTORWISE COPPER CONSUMPTION IN INDIA 11% 7% 7%

6%

56% 5% 8%

Elec & Tel General Engg. Others ICDC

Transport Cons. Durable

Process Ind Bldg & Constn

REFINED COPPER PRODUCTION CAPACITY

Year 1928 1996-97 1997-98 2008-09 ICDC

Quantity (tonnes) 8000 47,500 247,500 997,500

REFINED COPPER PRODUCTION

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Year 1956 1970 1980-81 1990-91 2000-01 2002-03 2004-05 2006-07 2007-08 2008-09 2009-10

Quantity (tonnes) 7,800 9,300 21,831 40,598 265,060 351,731 415,009 657,584 717,982 651,754 684,962

REFINED COPPER PRODUCTION 800,000

QUANTITY (Tonnes)

700,000 600,000 500,000 400,000 300,000 200,000 100,000

ICDC YEAR

-1 0 20 09

-0 9 20 08

-0 8 20 07

-0 7 20 06

-0 5 20 04

-0 3 20 02

-0 1 20 00

-9 1 19 90

-8 1 19 80

19 70

19 56

0

GROWTH OF METAL INDUSTRY DEPENDS ON

• Availability of Raw Material – ore, power, etc. • Indigenous processing capacity • Domestic market ICDC

COPPER ORE AVAILABILITY

• M/s. Sterlite & Birla Copper have acquired mines overseas

• M/s. HCL also have new initiatives – Developing new mine, increasing existing mine capacity to ramp up present 3.5 MT capacity to 12.5 MT by 2017 ICDC

– Also exploring assets in overseas

ACHIVEMENTS OF FABRICATING INDUSTRIES Adoption of latest technologies — • Continuous strip casting line • CCR wire rod mills • High speed wire drawing machines • Cluster rolling mills • Continuous pickling lines • Continuous annealing lines • Conform and

Improved quality assurance through ICDC

• • •

Updated testing facilities ISO accredition Effort to export

MARKET GROWTH OPPORTUNITIES

High to Very High ICDC

KEY DRIVERS FOR DEMAND GROWTH

• Copper is indispensable for many

end use sectors which are on fast growth track

• Infrastructure development is Govt.’s priority

• Increased quality consciousness • Improved life style • Growing domestic market extending to rural areas

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• Newer opportunities

EXISTING MARTKET WITH HIGH GROWTH POTENTIAL

• Electrical • Transport • General Engineering • Consumer Durables ICDC

ELECTRICAL

• Very low per capita electricity consumption

• Addition to generation capacity • Thrust on improved Power Quality by better Transmission, Distribution & Utilization System

• Copper is reliable and safe ICDC

ELECTRICITY CONSUMPTION PER CAPITA (kwh/Year) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000

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ELECTRICAL

• Very low per capita electricity consumption

• Addition to generation capacity • Thrust on improved Power Quality by better Transmission, Distribution & Utilization System

• Copper is reliable and safe ICDC

TRANSPORT

• Railways – Track electrification – Higher capacity loco – Underground / overhead services – AC coaches – Improved signaling system

• Automobile ICDC

– Auto electricals – Increased production

RELATIVELY NEW MARKET

• Water & Gas pipe line • Solar water heater • Interior products ICDC

FUTURE POSSIBILITIES

• Fire sprinkler system • Desalination • Anti-microbial property based application

• Reverse substitution – viz. ICDC

sugar mill tubes, coinage, etc.

EXPORT STATUS

• Refined copper and CCR rod being exported regularly

• Some semis manufacturers have also established export market &

• Many are looking for opportunities ICDC

ICDC