Indian Copper Smelter Reopens

SWIL Ltd. recently started production at its Ahmedabad, India copper smelter. The restart follows a six year delay in operations.

SWIL, set to become India's third-largest copper maker once its plant reaches full capacity of 70,000 metric tons a year, will operate at about 60 percent of capacity from July, said the official, who declined to be identified.

"We are now in the stabilization period. We will gradually increase copper output and produce at the full capacity level in the next fiscal year ending in March 2006," the official said.

The company is expected to produce 500 metric tons of copper cathode this month, and 1,000 metric tons in May.

SWIL started trial production at the smelter late last month.. A consortium of lenders including ICICI Bank and Industrial Development Bank of India owns a 64.61 percent stake.

SWIL is using copper scrap as a raw material to produce the metal as it is facing problems in importing copper concentrate, an intermediate product, because of tight supply and firm prices in the global market, the official said.

SWIL plans to continue sourcing copper scrap from the domestic Indian market until processing charges and the availability of copper concentrate in the global market improve, adding that the company could also import copper scrap. Reuters