Gujarat: India’s public sector copper major, Hindustan Copper Limited (HCL), is eyeing a major revival. According to reliable sources, HCL plans to restart its 50,000-tonne per annum secondary copper smelter & refinery at Bharuch district, Gujarat — after a six-year hiatus.
The move comes amid an improved global copper price environment, strong demand for recycled copper, and India’s push under its critical minerals policy to ramp up recycling.
Background of the HCL copper recycling refinery
HCL had acquired the plant and machinery, including lease-hold land of the earlier Jhagadia Copper Ltd (JCL) in June 2015 for around ₹210 crore and renamed it as the Gujarat Copper Project (GCP).
The plant is a secondary copper smelter and refinery complex located in Jhagadia Industrial Estate, Bharuch district, Gujarat.
It had a design capacity of 50,000 tpa of copper cathode, LME-A grade, capable of processing e-scrap and other copper-bearing materials.
Operations at the facility had been suspended since 2019 due to weak economics and lower margins in copper recycling.
Top Reasons of HCL Copper Recycling Refinery Revival after 6 Years
1. Bullish Copper Prices: Global copper prices have seen a strong rebound: from over USD 8,000/tonne in 2023, to above USD 10,000 in 2024, and now around USD 10,740/tonne in November 2025.
This improvement has boosted recycling margins and made the restart of a secondary refinery economically viable again.
2. India’s Recycling & Critical-Minerals Push: The Indian government in October announced a ₹1,500 crore incentive scheme to promote large-scale recycling facilities extracting critical minerals from secondary sources (e-waste, spent batteries). Copper is a key metal in that scheme.
Experts note that recycled copper typically retains full chemical and physical properties — making it strategic for India’s clean-energy transition and critical-minerals strategy.
3. Domestic Demand Outlook: From a demand side, India’s copper consumption is forecast to be between 1.55 to 1.65 million tonnes in FY26, with recycled copper accounting for 25-30 % of that. Analysts expect copper demand to rise further toward 2047.
Key Project Details of HCL Copper Recycling Refinery Rewiwal
Plant Location: Jhagadia Industrial Estate, Bharuch district, Gujarat.
Capacity: 50,000 tpa copper cathode production from a secondary smelter/refinery.
Technology: Built in collaboration with Sweden’s Outokumpu Technology AB (formerly Boliden Contech AB) and Xtrata, Australia for ISA refinery process.
Status: Dormant since 2019. HCL is now scouting for a partner (domestic or international) to restart on a revenue‐sharing basis.
Implications & Importance of HCL Copper Recycling Refinery Rewiwal
Reduced Import Dependence: India currently imports large quantities of copper scrap and ores. A revived domestic recycling plant can reduce import bills.
Jobs & Investment: The scheme tied to the recycling initiative is expected to attract approx. ₹8,000 crore investment and create nearly 70,000 jobs.
Sustainability & Circular Economy: Recycling copper supports circular economy goals – copper retains full properties after multiple cycles.
Strategic Metal for Clean Energy: With EVs, solar PV, wind, and grid infrastructure, copper demand is set to rise sharply. Having domestic capacity strengthens supply-chain resilience.
PSU Revitalisation: For HCL, reactivating GCP can improve asset utilisation and revenue profile, reflecting the government’s push to make PSUs more efficient.
Challenges Ahead
Scrap Sourcing: One major constraint: sourcing adequate quality copper scrap domestically. India imports about 50 % of scrap used.
Partner Selection & Revenue Sharing: HCL must find a suitable partner (domestic or global) and strike favourable terms.
Maintaining Global Quality Standards: The plant aims to produce LME-A grade cathode; maintaining such quality is essential for export or premium domestic markets.
Market Price Volatility: Though the price environment is favourable now, metals are cyclical. Sustaining margins will be key.
Regulatory & Infrastructure Support: Recycling being a new priority, regulatory clarity, tax incentives and logistics for scrap are crucial.
What’s Next & Timeline
According to the sources:
- HCL has initiated discussions to scout for partner(s) for the GCP revival on a revenue‐sharing basis.
- Depending on partner selection and clearances, the plant restart timeline will be firmed up in the coming months.
- Watch out for official statements from HCL and the Ministry of Mines, as well as tenders inviting recycling partners.
- Industry observers expect recycling margins to improve further and copper demand to rise, making this revival timely.
About HCL
HCL, incorporated on 9 November 1967, is a Schedule-A Central Public Sector Enterprise under the administrative control of the Ministry of Mines, Government of India.
It is India’s only vertically-integrated copper company — from mining, beneficiation, smelting, refining and manufacture of rods.
