Hindustan Copper Appoints South West Mining as Mine Developer
Hindustan Copper Limited (HCL) has appointed South West Mining Ltd. (SWML) as Mine Developer-cum-Operator (MDO) for a period of 20 years, which is extendable by 10 years. The agreement for the same was signed between HCL and SWML on 9th January 2025.
Through this move, Hindustan Copper seeks to re-open and expand operations at Rakha Copper Mine in East Singhbhum, Jharkhand. Rakha Mine has been shut since 2001 as its operation became unviable for HCL. Apart from this, South West Mining will be developing and operating a new 3 MMTPA underground mine in Chapri, Jharkhand for HCL. A new concentrator plant will also be established at Chapri. Together, work at Rakha and Chapri entail a CapEx of about Rs. 2,700 crore, with a potential to create 10,000 direct and indirect jobs.
Hindustan Copper has set a target to increase its mine production capacity to 12.2 Million Tonne Per Annum (MMTPA) by FY-29 from 3.78 MMTPA in FY-24. In light of this, the company is looking at expansion projects and re-opening of closed mines. Being the only miner and a major producer of Copper in India, this target assumes a national significance, as it could reduce the country’s dependence on Copper ore imports. In FY-24, India’s imports for Copper ore & concentrate were valued at around Rs. 25,951 crore, against Rs. 243.03 crore worth of exports. This huge disparity in import and export values indicate a massive burden on the exchequer, considering the rise in India’s Copper demand.
