The move to gain the status of a 100% EOU by Sterlite Industries is in line with trends in the Indian copper industry which in the coming years will emerge as a net exporter of the metal.
KOLKATA: Sterlite Industries Ltd, a group company of Anil Agarwal-controlled Vedanta Resources Limited, is planning to convert itself into a 100% export-oriented unit (EOU) following which its 3 lakh tonne copper smelter in Tuticorin will primarily cater to global markets.
The move to gain the status of a 100% EOU by Sterlite Industries, rated as a star trading house and currently exporting at least 50% of its production of refined copper, is in line with trends in the Indian copper industry which in the coming years will emerge as a net exporter of the metal.
According to spokesperson of Vedanta Resources, “achieving a 100% EOU status enhances our corporate image. Conversion to an EOU essentially means that we are making a commitment to the government that we will principally export our production”.
“In terms of selling in the global market, this means that our quality will be necessarily of the highest standard. Incidentally, Sterlite is currently the only Indian company with a registration from the London Metal Exchange (LME) for all our copper brands,” the spokesperson said.
Sterlite Industries which does not have any captive copper mine in India , sources its entire ore and concentrate requirement of its smelters, from imports. The conversion into an EOU will entitle the company to import concentrate as well as components on a duty free basis.
Sterlite owns two mines in Australia-Mount Lyell in western Tasmania with an ore reserve of 192 million tonne and Thalanga Mines in Queensland. Its copper facility at the port town of Tuticorin has a smelter capacity of 3 lakh tonne which is being expanded further through de-bottlenecking. The plant incorporates a 1 lakh tonne per annum rod making facility and sulphuric acid production of 1.3 lakh tonne per annum.
Sterlite becoming an EOU should be viewed, according to analysts as a strategic move to be a step ahead of the emerging trend whereby India moves from being in shortage of copper and a net importer to surplus production and a net exporter of the metal in global markets. /R
Until a few years ago, Hindustan Copper Limited (HCL) was the sole refiner in the country producing 47,500 tonnes meeting just 25-30% of the domestic demand while balance was exported. Since 1992, when Sterlite and Hindalco Industries set up copper smelters, domestic production has gone up to 5.12 lakh tonne which in a couple of years is expected to touch 9 lakh tonne per annum.
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