Can Lloyds replicate Gadchiroli success in Congo’s copper belt?

copper demand is expected to surge globally amid electrification, renewable energy and grid expansion, even as supply remains constrained. Global benchmark copper prices are currently around $11,000-12,000 per tonne, jumping a little over 30% over the last one year.Drawing a parallel between operating a mine in Gadchiroli and in Congo is not entirely fair, said Suman Kumar, assistant vice-president for metals and mining at brokerage Philip Capital.In India, companies understand regulatory and political ecosystem, but in foreign jurisdictions, especially parts of Africa, execution risks are far higher, said the sell-side analyst.He pointed to examples of Indian companies that struggled to scale overseas mining projects, including Jindal Steel and Power Ltd in Mozambique and Vedanta Ltd's challenges at Konkola Copper Mines in Zambia.“Even companies with significantly deeper financial muscle have struggled.

So any guidance on timelines or margins, particularly projections like 30% Ebitda by FY27, should be viewed cautiously. It is easier said than done,” Kumar said.Meanwhile, Vedanta, in an email response, said its Zambia mines are raising production, with an average monthly output of around 8,000 tonnes.Multiple mining companies have faced operational and commercial challenges in Congo, said Satnam Singh, senior practice leader & director, Crisil Intelligence."China Molybdenum temporarily halted exports from its Tenke Fungurume copper-cobalt mine after disputes over export licences and taxation with state authorities, illustrating how regulatory uncertainty can interrupt production and contracts,” Singh said.Commodities giant Glencore is in protracted negotiations with the Congolese government over joint venture terms and