The Adani Group’s fully-owned Kutch Copper smelter in Gujarat’s Mundhra is expected to begin operations in a few weeks, market sources stated on Monday.

Kutch Copper commissioned the first unit of its copper refinery project in Mundra earlier this year. The unit will be expanded to reach a capacity of one million tonnes after the stabilisation of the 500,000-tonne unit over the next three quarters, according to market sources.

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The expansion is projected to cost between $700-800 million, bringing the total cost of the facility to around $2 billion. After completion, the Mundra-based smelter will rank among the largest single-location smelters globally, according to market sources.

After the smelter achieves full ramp-up in the coming fiscal year, its operations could generate earnings before interest, tax, depreciation, and amortisation (EBITDA) in the range of $250-300 million on a full-year basis.

Kutch Copper will initially source its copper concentrate from Latin America, but it is already talking to suppliers from Australia and Africa to diversify its sources of supply.

Around 40% of the copper produced will be utilised by the Adani Group for its renewable energy and transmission sectors, as well as its wires and cables business.

The second phase of the smelter, expected to commence after stabilising the initial 500,000-tonne unit and also doubling the capacity to 1 mtpa, will likely be funded through cash flows generated by the current operations. The decision for expansion is unlikely to be taken before FY27.