India's efforts to strengthen domestic copper production and reduce reliance on imports have received a boost with Hindustan Copper  (HCL) awarding LOHUM Materials the rights to restart, modernise and operate the Gujarat Copper Project at Jhagadia for the next 20 years.

According to an announcement shared by LOHUM on LinkedIn, the project involves reviving and upgrading the 50,000-tonne-per-annum facility, which will produce 99.9997% pure Grade-A copper cathodes. The material is expected to support growing demand from sectors such as power transmission, electronics, construction, artificial intelligence infrastructure, and electric vehicles, all of which are expected to drive India's copper consumption in the coming years.
The agreement marks a new chapter for a facility that has witnessed a turbulent operational history. The Jhagadia plant was originally developed as a secondary copper smelter by Jhagadia Copper Limited and commenced commercial production in 2006. However, financial challenges and working capital constraints led to the suspension of operations in 2009.

Recognising the strategic importance of the asset, Hindustan Copper acquired the facility through the asset reconstruction process in 2015 and subsequently revived operations. Yet the project continued to face challenges related to raw material availability and operational economics. Smelting and refining activities at the Gujarat Copper Project were eventually suspended in 2019 as the company reassessed its business priorities and feedstock strategy.

The partnership reflects a broader effort to utilise existing infrastructure to strengthen India's copper value chain at a time when domestic demand is rising rapidly. Copper is a critical material for the country's energy transition, digitalisation and manufacturing ambitions, with applications spanning renewable energy systems, electric mobility, power networks and advanced electronics.

LOHUM believes the project is a milestone for India's self-reliance ambitions and an example of how public-sector enterprises and private-sector innovators can work together to advance national priorities. The company noted that the collaboration combines Hindustan Copper's established industrial infrastructure with LOHUM's operational and materials science expertise to unlock additional domestic refining capacity.

The Letter of Award was presented by Sanjiv Kumar Singh, Chairman and Managing Director of Hindustan Copper Limited, to Pawan Chandra, Business Head, and Ms. Supriya Srivastava, Director (Finance & HR), LOHUM Materials Pvt. Ltd.