Vedanta Copper plans to invest around $2.3 billion over the next three to four years to expand its copper production capacity, with a potential restart of its 400,000 tonnes per year (tpy) Tuticorin smelter in Tamil Nadu back on the agenda, The Economic Times reported on October 2, citing Puneet Khurana, chief executive officer of Vedanta Copper.
The company aims to produce around 500,000 tonnes of copper annually in India and another 500,000 tonnes in Saudi Arabia by the end of the decade. It is already producing approximately 100,000 tonnes annually at its Fujairah operations in the United Arab Emirates (UAE), according to the report.
Around $2 billion of the planned capital expenditure is earmarked for integrated copper operations in Saudi Arabia, including mining, smelting and copper rod production. The company's $33 million copper rod mill in the country is nearing commissioning, while discussions with the Saudi government regarding a proposed copper smelter are at an advanced stage. Vedanta expects to make a decision on the smelter project during the current quarter, the report said.
In India, Vedanta produced 170,000 tonnes of copper cathodes at its Silvassa facility in fiscal 2026. The company is currently producing at an annualised rate of more than 245,000 tonnes at the facility, operating at around 95% of capacity, Khurana told The Economic Times.
The proposed restart of the Tuticorin smelter remains subject to legal and regulatory approval. The plant, which had an installed capacity of 400,000 tpy, was ordered shut in 2018 over environmental concerns. Vedanta is pursuing a proposal to restart the facility to produce so-called green copper, with a court decision expected within approximately three months, according to Khurana.
If approval is granted, the company plans to invest $250 million to refurbish and restart the facility within eight to nine months. The proposed operations would place greater emphasis on renewable energy, recycling and environmental compliance. The restarted plant is expected to contribute around 250,000 tonnes of annual copper output, the report said.
The potential restart could increase domestic copper production capacity and alter India's copper supply dynamics, although the timing and scale of any additional output will depend on the outcome of the legal proceedings and the implementation of the proposed refurbishment.
Meanwhile, Khurana said copper smelting margins had faced pressure over the past two years amid excess smelting capacity in China and historically low treatment and refining charges (TC/RCs). Higher sulphuric acid prices and improved recovery values for other metals have, however, provided support to smelter economics.
