Adani Group, a ports-to-energy conglomerate, entered the copper manufacturing industry by securing financing from public sector lenders for a 1 million tonnes per year operation in Mundra, Gujarat.
The company said in the statement, “Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), is setting up a greenfield copper refinery project for production of refined copper with 1 million tonnes per annum in two phases.”
Through a syndicated club loan for the greenfield copper refinery project in Mundra, Gujarat, KCL has achieved financial closure for the phase-1 capacity of 0.5 million tonnes.
The bank statement further said. “ It has executed financing documents with the consortium of banks led by State Bank of India (SBI). The other consortium members are Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra,” the statement said.
For the whole debt demand of Rs 6,071 crore for Phase-1 of the KCL Project, the consortium of banks has approved and signed an agreement.
The project, according to Vinay Prakash, Director of Adani Enterprises Ltd., has the necessary technologies in place, and building work at the site is moving along nicely. Production is expected to start in the first part of CY 2024.
“It will be one of the largest copper refinery complexes in the world, with benchmark ESG performance standards, leveraging state-of-the-art technology and digitilization. This financial closure enables us to accelerate the project and signifies the commitment of the Adani Group to mobilise the required resources and complete the project within the set timelines,” he said.
The lenders’ legal assistance was provided by Desai & Diwanji Advocates, while their financial advisor was SBI Capital Markets Ltd. KCL received legal advice from Saraf and Partners Law Offices.
KCL was founded on March 24, 2021, with the intention of engaging in copper-related operations such the production of copper cathodes, copper rods, and related goods.