Revitalize gold and copper: India's path to mineral independence and economic growth
Gold and copper are two of the oldest metals known to humans. They have now acquired a new sheen. In the case of gold, uncertainty in the global economy and instability in geopolitics have sent the price of the precious metal, an investment of safe resort, soaring. In the case of copper, the ongoing energy transition and move to Industry 4.0, which are highly mineral-intensive, has seen demand grow impressively with an upward pressure on prices.
India is heavily import-dependent for both metals, importing more than 95% of demand for each. GoI can dent this trend.
Indeed, security of mineral supply chains is already emerging as a priority. India's goal as a manufacturing hub can only be realised if there is a security of raw materials. So far, GoI has pursued a strategy of looking for resources overseas. It can look at home as well.
There are three PSUs that have a monopoly over gold and copper mining — Hutti Gold Mines (HGM), Bharat Gold Mines Ltd (BGML) and Hindustan Copper. Each is an underperforming PSU. Privatisation could herald turnarounds that would squarely be in the national interest.
In FY24, India imported 795 t of gold worth $46 bn and 2.2 mn tonnes of copper, including ore and metal products, worth $12 bn. This may be a trend in recent times, but is an anomaly in India's long history.
Kolar Gold Fields (KGF) in Karnataka (under BGML) has been reportedly producing gold since the Indus Valley civilisation. Gold production from this mine continued under several dynasties like the Guptas, Cholas and
