Adani Enterprises Limited (AEL)'s copper business subsidiary, Kutch Copper Limited (KCL), has achieved financial closure for first phase of the greenfield copper refinery project at Mundra, Gujarat. The company has executed financing document with a consortium of banks led by State Bank of India for the syndicated club loan.

The consortium of banks including Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra, has sanctioned the entire debt requirement of ₹6,071 crore for Phase-1 of the KCL Project. An agreement was signed to this effect, a statement said on Sunday.

KCL is setting up the greenfield copper refinery project for production of refined copper with 1 million tonnes per annum (mtpa) in two phases. The first phase of the project involves 0.5 mtpa capacity.

Stride towards EV and renewables

"KCL aims to create the capacity for production of refined copper, which plays a vital role in strengthening the nation’s shift towards EV and renewables," said Vinay Prakash, Director Adani Enterprises Ltd.

The project is scheduled to commence production during first half of the calendar year 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 digitalisation. 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," said Prakash.

Copper Business

Set up in March2021, with the object to undertake copper business - related activities including manufacture of copper cathodes, copper rods and associated products, KCL will be part of the Materials, Metals and Mining vertical of the Adani Portfolio.

SBI Capital Markets Ltd acted as the financial advisor and Desai & Diwanji Advocates acted as the lenders’ legal counsel. Saraf and Partners Law Offices acted as the legal advisor to KCL, an AEL statement said.