The Sterlite Copper plant was established in Tamil Nadu's Thoothukudi district by Sterlite Industries (India) Limited, a subsidiary of the London-based mining giant Vedanta, in 1994. 

Prior to the setting up of the plant in Thoothukudi, the Maharashtra Industrial Development Corporation had allotted 500 acres of land to the company in 1992 to set up a copper smelting plant at Maharashtra's Ratnagiri district. However, following a year-long protest by residents of the area, the then district collector wrote to the company in July 1993, instructing them to suspend construction work.

The project was shifted to Tamil Nadu in 1994-95, after the Ministry of Environment and Forests gave environment clearance for the same in January 1995, without waiting for the Environment Impact Assessment. In 1996, the plant commenced operations after the Tamil Nadu Pollution Control Board issued it the licence to operate.

Since then, despite public opposition and legal challenges, the plant has been allowed to function without complying with air and water pollution norms. This has impacted the residents of Thoothukudi district in Tamil Nadu. Instances of environmental pollution caused by the plant date back to 1997, when 165 women working in a neighbouring factory fainted simultaneously due to sulphur dioxide poisoning from Sterlite Copper. Another toxic gas leak occurred in 2013 when emissions from the plant were at least double the permissible level. Also, at least 17 workers in the plant have died so far due to hazardous and negligent working conditions, while many more have been gravely injured. Several soil and water samples that have been collected from around the plant have been found to be heavily contaminated and toxic. However, the district administration and the TNPCB continued to defend the company and gave them the clean chit despite multiple protests from the public.

Protests against the plant intensified in April 2018 when a worker, who was maimed at the plant, attempted self-immolation and yet another individual in Thoothukudi died of cancer. The same year, protests intensified as people gathered to oppose Sterlite's proposed expansion, which they stated to be in violation of several land and environmental regulations. Protesters decided to march to the District Collector's office to mark their 100th day of protest. It is reported that the workers and officials of the plant were aware of the planned protest, but the district administration in Thoothukudi imposed Section 144 in the area on the eve of the protests and opened fire on the crowd when they reached the District Collector's office.

A People's Inquest has revealed that on May 22-23, 2018, at least 13 people protesting the expansion of the copper smelting plant were killed in police firing, including a 17-year-old. Many were injured. Following this, the Tamil Nadu Government ordered the closure of the plant.
On November 27, a three-member committee formed by the National Green Tribunal (NGT) to probe the closure of the plant termed the closure unjustified and described the move as political. The NGT ordered the reopening of the plant. On February 18, 2019, however, the Supreme Court set aside the NGT's order and refused to allow the reopening of the plant.

On August 18, 2020, the Madras High Court ordered the closure and permanent sealing of Sterlite Copper in Thoothukudi after listing various environmental violations and failures to obtain permissions from the TNPCB. In January 2021, the SC refused to recall its order rejecting an interim plea filed by Vedanta in December 2020.

The Tamil Nadu government allowed Sterlite Copper to reopen for a span of four months in 2021 to produce medical oxygen free of cost. The locals staged protest against the reopening over fear that the unit might begin copper production. Residents from hamlets around the factory submitted petitions to the Tamil Nadu government seeking the reopening of the factory in the hope of finding employment. Fatima Babu, an activist and coordinator of the Anti-Sterlite People's Movement, told LCW the company was trying to create a false image that the people wanted the reopening of the company. "We have been peaceful, but this should not be misconstrued as dampening of spirits. The opposition against the company continues as it was years ago."

In March 2022 the Supreme Court began hearing an appeal filed by Vedanta against a Madras High Court order refusing to reopen the plant. While court hearing is still pending in the matter, Vedanta has also initiated the process of selling the plant by issuing an expression of interest for that purpose in June 2022.