Hindustan Copper plans to sell copper concentrate produced by mines it is acquiring from Chile's Codelco to Hindalco and Adani, two sources familiar with the matter said. The state-run miner is exploring a joint venture with the Chilean state miner to mine and market copper as India seeks to secure long term supplies of the metal. Discussions remain at an early stage and participants are treating deliberations as confidential.

The company, together with Coal India and NTPC Mining, is in talks to secure four copper mining blocks from Codelco, the mines secretary said in April, and due diligence is under way. Hindustan Copper signed a preliminary agreement with Codelco last year and in May executed a non disclosure agreement and appointed a deal adviser. The firm did not provide comment to Reuters and has previously denied it was in joint venture talks.

According to two of the sources, technical teams from Hindustan Copper, NTPC Mining and Coal India visited Chile earlier this year to assess prospects, but commercial output remains distant and it could still take a decade before mining begins and concentrate is produced. The government is seeking to include a chapter on copper in free trade talks with Chile to secure an assured quantity of concentrate. Partner selection and commercial planning are ongoing. Officials plan to evaluate technical, environmental and commercial feasibility closely before firm commitments.

India, the world's second largest refined copper importer, may have to import 91 per cent to 97 per cent of its copper concentrates by 2047, the government has said. Domestic refined output is estimated at 573,000 t annually while demand is around 1.8 million (mn) t, underlining the gap the state intends to narrow through overseas assets and partnerships. Hindalco and Adani are among the largest potential domestic buyers of concentrate.