With Ambaji Project In Gujarat, India Eyes Copper Self-Reliance

Located at Ambaji, a pilgrimage town in north Gujarat, the Indian Bureau of Mines under the Central government has given the green signal to the project, valued at Rs 22,000 crore. The GMDC has already started drilling for the project. 

Roopwant Singh, Managing Director of GMDC, said, “With reserves of over 7,00,000 tonnes, this will be the only copper mine to be developed in India in the near future. Our exploration, drilling, and sampling have also indicated the presence of gold and silver. Since the mine is close to Ambaji town and the Balaram Sanctuary, securing the necessary approvals was challenging.”

A senior official from the Ministry of Mines stated that currently India imports 90 per cent of its total copper requirement. The Ambaji Copper Project setup is an integrated one, involving both mining and beneficiation — the process of upgrading a raw ore by increasing its concentration while removing waste.

It is expected to ensure high production capacity and long-term supply. In addition, it is expected to drive industrial expansion and create large-scale employment in north Gujarat.

Spread over 185 hectares, the project has identified not only copper, but also lead and zinc in the deposits. According to GMDC estimates, the total identified reserves are around 1 million tonnes, with a total value of Rs 22,000 crore, of which copper alone accounts for Rs 18,000 crore of minerals. The company has drilled 9,300 m so far, with a total of 24,000 m planned to be dug up.

It is noteworthy that copper demand is rapidly increasing due to applications in electric vehicles and renewable energy. The Ambaji project alone could meet nearly a fifth of India’s copper concentrate requirement. Copper is used in homes, highways, EVs, power grids and energy systems. India’s copper production in 2024-25 was 5,73,000 tonnes, reflecting an annual growth of 12.5 per cent.

India's Existing Copper Mines

India currently has five running copper mines — Malanjkhand in MP, Khetri, Kolihan and Banwas in Rajasthan, and Surda in Jharkhand. All the projects are operated by Hindustan Copper Ltd (HCL).

Together, they aim for an annual production capacity of 12.2 million tonnes by 2028-29, for which mine expansion has started. Proposals are underway to increase production capacity in Khetri and Kolihan, while new mines Surda and Banwas are in the expansion planning phase.

Gujarat's Copper Projects

1. Ambaji Copper Project: Located just 3 km from Ambaji, with reserves of 7,00,000 tonnes of copper, along with zinc, lead, gold, and silver.
2. Kutch Copper Smelter: A refined copper production facility in Mundra, with a capacity of 5,00,000 tonnes per year, currently in the ramp-up stage.
3. Gujarat Copper Project: Located in Zhagadia of Bharuch, this is Hindustan Copper’s secondary copper smelter-refinery facility.

Challenges Facing Copper Mines

• Low metal content, which increases production costs.
• Delays in approvals from multiple departments in complex areas.
• Mines like Malanjkhand need to shift from open-pit to underground operations.
• A significant gap between demand and local supply.
• Environmental and ecological impact due to land and forest disturbance.
• Water requirements put pressure on water resources.
• Changes in the lifestyle of communities living near the mine.
• Limited employment opportunities near the mine; local employment may not suffice.
• Large investments are required for mining operations.
• Advanced technology and worker safety issues.
• Approval challenges from the Environment Ministry, land regulations, and local institutions.