On July 15, 2025, India entered formal negotiations with Peru and Chile to secure long-term copper concentrate supplies, aiming to reduce its heavy dependency on imports amid growing domestic demand. These talks are part of broader free trade agreement processes with both countries, but with a clear focus on embedding copper procurement clauses into the final terms. India currently imports over 90% of its copper requirements, and this figure is expected to rise due to accelerating infrastructure expansion, electric vehicle adoption, and energy transition goals. Locking in stable copper supplies from two of the world’s top producers is seen as a strategic priority.
Complementing the diplomatic push, the Indian government is preparing a policy package to attract global mining companies to invest in downstream facilities within India and support Indian firms in acquiring stakes in foreign mines. The state-owned firm Khanij Bidesh India Ltd is leading initiatives to identify and assess acquisition opportunities in both Peru and Chile. The policy also proposes financial incentives for domestic copper processing, recycling, and smelting projects, aiming to build a more self-reliant and vertically integrated supply chain.
While these negotiations represent an important step in strengthening India’s critical mineral security, their success will ultimately depend on more than just commercial or diplomatic arrangements. Copper extraction in Peru and Chile has long been associated with complex environmental, social, and Indigenous rights dynamics. For these supply agreements to be sustainable, they must be rooted in responsible mining practices that prioritize community engagement, environmental safeguards, and local benefit-sharing. Securing a social license to operate in the regions where the copper is sourced is not just a moral imperative—it is essential to ensuring the long-term stability, legitimacy, and resilience of the entire value chain.