MUMBAI: Lloyds Metals and Energy Ltd is using copper to reduce its reliance on iron ore and India, as the company expands into steel and overseas mining assets in a bid to become a diversified global mining and metals player.
“We aim to produce 100,000 tonnes of finished copper cathode and concentrate over the next five years across two locations, creating a business that could generate nearly $1.3 billion in revenue,” managing director Rajesh Gupta told Mint on the sidelines of an international iron ore conference in Goa on 19 May.
“It’s still a smaller part of the business, but a very essential part of the business, because it’s also de-risking from one commodity or one location,” Gupta said.
The strategy centres on copper mining assets in the Democratic Republic of Congo (DRC), which Lloyds acquired in the previous fiscal.
In December 2025, the company acquired a 50% stake in the operational Surya Mines platform, followed by the purchase of a 49% stake in the CHEMAF Group in March.
Surya Mines is already operational and producing 700-750 tonnes of copper. It is expected to produce 9,000-10,000 tonnes this year, while CHEMAF is not expected to contribute production until its plants are commissioned. Meaningful production from CHEMAF is expected to begin by July 2027.
Gupta sought to allay investor concerns about political instability in the DRC.
“Right now, there are 70 to 90 companies operating, many of them are mining, many of them are doing the electrolytic process, so it is quite a well depoliticized business,” he said. “I am not saying the country is depoliticized, but that area is.”
He also pointed out that the Surya mines began operations within six months of acquisition, offering investors a sign of execution speed and operational stability.
Beyond the DRC, Lloyds is pursuing another copper opportunity through the Panguna mine project in Papua New Guinea's Bougainville region.
The company was recently selected as the preferred partner to redevelop the historic Panguna Mine. The mine holds 5.3 million tonnes of copper and nearly 19.3 million ounces of gold, according to commodities market intelligence firm BigMint.
The company has signed an initial exploration agreement for a copper mining project in Panguana, which Gupta described as an early-stage arrangement.
The overseas acquisitions place Lloyds among a small group of Indian companies seeking direct exposure to copper mining assets. In India, the largest and only copper miner is state-owned Hindustan Copper Ltd. Private-sector players such as Hindalco Industries in Dahej, Gujarat, and Adani's Kutch Copper operate smelters, importing ore and producing refined copper domestically.
Apart from Lloyds, billionaire Anil Agarwal's Vedanta Resources also has a copper mine in Zambia, which has produced at least 8,000 tonnes with a target of 300,000 tonnes by 2030.
Growth pipeline
The copper business is expected to begin contributing meaningfully to earnings. Lloyds expects the segment to generate ₹500-700 crore in Ebitda in FY27.
Lloyds reported consolidated revenue from operations of ₹17,112.67 crore in FY26, more than doubling from FY25. Net profit rose to ₹3,828.64 crore from ₹1,455.24 crore in the previous year.
At current copper prices, the economics appear attractive.
The company remains one of India's largest private merchant iron ore miners and is transitioning into an integrated steel manufacturer with a planned 4 million tonnes per annum (mtpa) steel capacity by 2031. It has also signed an MoU with Tata Steel to set up another 6 mtpa plant in Maharashtra. Mining currently contributes 68% of Lloyds' total revenue, according to its latest annual report.
The company is also known for restarting mining operations in the Naxal-affected Surjagarh hills in Gadchiroli, Maharashtra, through local job creation and development initiatives.
Analysts say the copper expansion could diversify earnings, though execution risks remain.
Lloyds Metals and Energy has evolved from a merchant iron ore miner into an integrated player with exposure to both ferrous and non-ferrous segments. The merger of its mine developer and operator (MDO) business (Thriveni Earthmovers), along with a stronger push into copper, provides a clear growth pathway further strengthening earnings visibility through a more stable business model, according to an Anand Rathi Institutional Equities report dated May 13.
However, Equirus Institutional Equities said in a 1 April report that key monitorables include the ramp-up at CHEMAF.
It flagged risks including execution delays, higher capital intensity, balance sheet repair at CHEMAF, geopolitical or regulatory risks in the DRC and commodity price volatility.
The company recently secured a ₹750 crore investment from Kotak Alternate Asset Managers Ltd in non-convertible debentures of Lloyds Metals.
For FY27, Lloyds has guided for capex of around ₹10,000 crore.
