Artificial intelligence (AI) has emerged as a significant driver of copper demand, with each AI data center consuming a staggering 28-30 tonnes of copper, according to Sanjiv Kumar Singh, Chairman and Managing Director of Hindustan Copper . This surge in demand is helping to stabilize copper prices alongside traditional uses in electric vehicles and machinery.

Hindustan Copper's Expansion Plans

In response to the growing demand, Hindustan Copper has taken strategic steps to boost its production capacity:

• Reopened mines in Jharkhand that had been closed since 2001
• Plans to increase ore output threefold from 3.47 million tonnes per annum to 12.2 million tonnes by FY31

Market Outlook

Market analyst Ambareesh Baliga has expressed optimism about Hindustan Copper's potential, suggesting that the company could deliver multi-bagger returns. Baliga noted that copper could become 'the new gold' from an industrial perspective, highlighting its growing importance in various sectors.

Global Copper Market Dynamics

The copper market is experiencing several notable trends:

• Global copper deposits and mines have increased over the past five years, which is expected to improve copper grade availability
• Copper futures are trading near range highs due to various global factors, including supply constraints
• The emergence of AI as a major copper consumer is adding a new dimension to demand projections

AI's Impact on Copper Consumption

The revelation that AI data centers are now the single largest consumers of copper underscores the transformative impact of technology on traditional commodity markets. This trend is likely to continue as AI adoption grows across industries, potentially creating a sustained demand for copper in the coming years.

Hindustan Copper's proactive approach to increasing production capacity positions the company to capitalize on these market dynamics. As the demand for copper continues to evolve, driven by both technological advancements and traditional industrial uses, the metal's strategic importance in the global economy appears to be on an upward trajectory.

Shares of Hindustan Copper Ltd (HCL) experienced a significant uptick, soaring over 8% to reach an intraday high of ₹305.40 before settling around ₹298.71. The surge in stock price was primarily driven by two key developments: the extension of a mining lease and a strategic partnership announcement.

Mining Lease Extension

Hindustan Copper has successfully executed a mining lease deed for the Rakha Copper Mine located in Jamshedpur. This crucial development extends the company's lease for an additional 20 years, paving the way for the reopening and expansion of operations at the Rakha mine, which is considered a key copper asset for the company.

Strategic Partnership with Oil India

In a move aligned with the government's National Critical Minerals Mission, Hindustan Copper has signed a Memorandum of Understanding (MoU) with Oil India. This strategic partnership aims to foster collaboration in the exploration and development of critical minerals, with a particular focus on copper.

Strong Quarterly Performance

The company's recent quarterly results have further bolstered investor confidence:

The robust financial performance, characterized by significant improvements in net profit and EBITDA margins, underscores the company's operational efficiency and growth trajectory.

Technical Indicators

From a technical analysis perspective, Hindustan Copper's stock is currently trading above all key moving averages, signaling strong bullish momentum in the market.

Upcoming Financial Results

In a recent corporate filing, Hindustan Copper announced that the trading window for dealing in the company's shares will be closed for Designated Persons and their immediate relatives from October 1, 2025, until 48 hours after the declaration of financial results for the quarter ending September 30, 2025. The date of the Board meeting to declare these results will be communicated in due course.

The confluence of positive developments, including the mining lease extension, strategic partnership, and strong quarterly results, has contributed to the significant uptick in Hindustan Copper's share price. Investors and market watchers will be keenly observing the company's future moves and the upcoming quarterly results for further insights into its growth trajectory.