Vedants aims to be world’s largest copper, silver producer, says Anil Agarwal at HTLS 2024

Vedanta Group founder Anil Agarwal on Saturday said the mining giant is looking to expand its presence in the metals and mining sector with plans to ramp up production across key commodities.

Speaking at the Hindustan Times Leadership Summit 2024, Agarwal said the group aims to produce 3 million tonnes of zinc, increase aluminium output by another 3 million tonnes, and become the world’s largest producer of copper and silver.

The group is also looking to produce 500,000 barrels of oil, but Agarwal did not give a timeline.

Despite several shortcomings, the company is looking forward to playing a crucial role in the global energy transition. 

“We have committed that three of our biggest companies Hindustan Zinc Ltd, Cairn Oil and Gas and Zinc International will be running on 100% renewable energy within the next 7-10 years,” said Priya Agarwal Hebbar, chairperson of HZL and non-executive director of Vedanta Ltd.

“Energy transition can only happen with a focused approach on critical minerals and energy transition metals,” Hebbar said. “It’s absolutely crucial that we should do as much of this domestically. We have only explored 20% of our natural resources.”

HZL was ranked number one in the 2023 S&P Global Corporate Sustainability Assessment (CSA) for the metals and mining sector, while Vedanta Ltd. secured the third position.

On the semiconductor front, entering the industry does not seem to be Vedanta’s stronghold, but the mining giant’s founder said it can be done with the support of the government and the people.

“If everyone is with me and I am still working, because this is not my core strength, I can definitely deliver,” said the Vedanta founder, appreciating the other companies in the market like Tata and Adani for their semiconductor move.

“But if you ask me are we aggressively working towards that, I am not,” said Agarwal at the summit.

Vedanta was among the early movers who decided to make semiconductors in India. The company was going to set up a semiconductor plant in Gujarat in a joint venture with Hon Hai Precision Industry Co. Ltd (Foxconn), but the Taiwanese major walked out of the deal in 2023.

Subsequently, Agarwal’s competitors picked up pace in the sector. The Adani Group is eyeing a $3 billion investment in the next two to three years to set up semiconductor manufacturing, Mint reported earlier. The Tata Group also aims to begin commercial production from India’s first semiconductor fabrication unit by 2026.

Despite the setbacks, including the closure of Vedanta’s copper smelting plant in Thoothukudi, Tamil Nadu, and challenges in the semiconductor sector, the group remains committed to its long-term vision. 

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The Vedanta founder also said he is looking to set up a ‘meaningful business’ in Bihar, but is waiting for the right time.

All the minerals are available in Bihar. “It’s only a question of time. There’s a strong government, 30 crore people. Industry and tourism will come.”