What’s in Today’s Article?
- Global Copper Supply Chain Latest News
- Rising Demand for Copper
- India’s Overseas Focus for Copper
- Africa’s Growing Role in Critical Minerals
- Trump’s Executive Order on Copper
- China’s Efforts to Control Overcapacity
- Global Copper Supply Chain FAQs
Global Copper Supply Chain Latest News
- Recently, India secured a 9,000-sq-km block in Zambia to explore copper and cobalt, crucial for overseas mining as domestic production declines.
- Earlier, US had warned that overreliance on foreign copper threatens national security, defense, infrastructure, and technology.
- At the same time, facing tight copper ore supply, China is restricting smelting overcapacity—new smelters must secure long-term mining contracts, mainly in DRC, Chile, and Peru. It controls 50% of global smelting and refining capacity.
Rising Demand for Copper
- Driven by EV batteries and clean energy technologies, copper demand is projected to outstrip supply by 2035.
- Countries like India, China, and the U.S. are racing to secure supply chains and boost domestic capabilities.
Copper Value Chain
- Copper ore undergoes multiple processing stages:
- Concentrate production
- Smelting into anode
- Refining into cathode (used for industrial inputs like rods, sheets, and wires).
Mining Remains Essential
- Recycling and alternative battery chemistries could help, but primary mining is still crucial to meet global demand.
India’s Overseas Focus for Copper
- India’s Declining Domestic Copper Production
- Copper is a critical mineral for India.
- Domestic ore production (2023-24): 3.78 million tonnes, 8% lower than in 2018-19.
- Hindustan Copper Ltd (HCL) saw a 6% year-on-year decline in production (April–January 2023-24).
- Rising Dependence on Imports
- Copper concentrate imports doubled in value to ₹26,000 crore (2023-24) from 2018-19.
- India has large copper deposits, but extensive exploration is needed before mining.
- Overseas Expansion Strategy
- India is securing greenfield and brownfield copper assets in Zambia, Chile, and the DRC to meet short-term demand.
- These high-grade deposits and mining-friendly environments allow faster project development.
- However, geopolitical risks pose challenges to overseas investments.
Africa’s Growing Role in Critical Minerals
- Africa’s share in copper, lithium, and natural graphite production is increasing.
- The Democratic Republic of Congo (DRC) produces 70% of global cobalt and 16% of global copper.
- The DRC is projected to become the world’s second-largest copper supplier by 2030 (IEA report).
India’s Copper Exploration in Zambia
- India secured a 9,000-sq-km block in Zambia’s Northwestern province through a government-to-government deal.
- Geological Survey of India (GSI) will explore the site, which is six times the size of Delhi.
- In Copperbelt province, Vedanta Group already owns a large copper mine.
- Zambia ranks 7th globally in copper production (after Chile, Peru, and the DRC).
Global Competition for Mineral Assets
- Major copper producers in Zambia: First Quantum Minerals (Canada); Nonferrous Metal Mining (China, state-owned).
- India’s Ministry of Mines is working through nodal officers in the DRC, Tanzania, Mozambique, and Rwanda to secure more mineral assets.
- Competition for critical minerals remains intense as other countries also seek to expand their supply chains.
Trump’s Executive Order on Copper
- February 25: President Donald Trump launched an investigation into copper imports and their impact on U.S. national security and economic stability.
- The White House fact sheet emphasized copper’s role in defense, infrastructure, clean energy, EVs, and electronics.
- The U.S. lags behind China in smelting and refining capacity, despite having ample copper reserves.
- The investigation aims to identify supply chain vulnerabilities and recommend tariffs, export controls, and incentives to boost domestic production.
China’s Efforts to Control Overcapacity
- China controls over 50% of global copper smelting but faces falling treatment and refining charges (TCRCs) and a supply-demand gap.
- Excess smelting capacity has squeezed margins, making operations less viable.
- Copper concentrate availability remains weak, forcing custom smelters to compete for limited supply.
- According to a report, overcapacity will lead to: Lower utilization rates for smelters; Potential suspensions or closures of smelting operations; Delays in new smelting projects to restore market balance.
Global Copper Supply Chain FAQs
Q1. Why is copper demand rising?
Ans. Copper demand is increasing due to its crucial role in EV batteries, clean energy, and industrial applications.
Q2. Why is India investing in overseas copper mining?
Ans. India’s domestic copper production is declining, making it reliant on imports, prompting investments in Zambia, Chile, and the DRC.
Q3. How is the US addressing copper supply risks?
Ans. The US is investigating copper import vulnerabilities and considering tariffs, export controls, and incentives to boost domestic production.
Q4. Why is China restricting copper smelting capacity?
Ans. China faces excess smelting capacity, falling refining charges, and limited copper ore availability, forcing supply chain adjustments.
Q5. Which African countries are key for copper mining?
Ans. The DRC, Zambia, and Tanzania are major players, attracting global investments due to rich copper reserves and mining infrastructure.
Last updated on June, 2025
→ UPSC Notification 2025 was released on 22nd January 2025.
→ UPSC Prelims Result 2025 is out now for the CSE held on 25 May 2025.
→ UPSC Prelims Question Paper 2025 and Unofficial Prelims Answer Key 2025 are available now.
→ UPSC Calendar 2026 is released on 15th May, 2025.
→ The UPSC Vacancy 2025 were released 1129, out of which 979 were for UPSC CSE and remaining 150 are for UPSC IFoS.
→ UPSC Mains 2025 will be conducted on 22nd August 2025.
→ UPSC Prelims 2026 will be conducted on 24th May, 2026 & UPSC Mains 2026 will be conducted on 21st August 2026.
→ The UPSC Selection Process is of 3 stages-Prelims, Mains and Interview.
→ UPSC Result 2024 is released with latest UPSC Marksheet 2024. Check Now!
→ UPSC Toppers List 2024 is released now. Shakti Dubey is UPSC AIR 1 2024 Topper.
→ Also check Best IAS Coaching in Delhi