The Hindu : Business : Hindustan Copper to reopen closed mines in Jharkhand

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Wednesday, Sep 27, 2006
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Hindustan Copper to reopen closed mines in Jharkhand

Special Correspondent

To register company on London Metal Exchange

KOLKATA: Hindustan Copper Limited (HCL) has embarked on a plan to increase its mine output by exploiting new reserves in Rajasthan and Jharkhand, while reopening some of its closed mines in Jharkhand, S. C. Gupta, Chairman-cum-Managing Director, said.

Addressing a press meet here on Tuesday, he said the company had appointed U.K.-based SRK consultants to formulate a road map for optimising mining operations, while improving the feasibility of the ones where operations were to be resumed. HCL had closed down all the five mines in Jharkhand four years ago on viability grounds.

Now the scenario had improved and there were plans to resume operations at the Surda mine in Ghatsila. But almost the entire operation was proposed to be outsourced.

He said that a Rs. 1,500-crore capital expenditure plan had been worked out till 2012 for modernising and developing HCL's mines.

HCL has accumulated losses of Rs. 723 crore. However, with net profits since 2004-05, it is not averse to tapping the market for raising resources. It made a Rs. 100 crore net profit, which the company wants to double this fiscal. HCL produced 36,087 tonnes of refined copper in 2005-06.

Mr Gupta admitted that ore production was affected since the company carried a backlog of mine development work. "We are now trying to channelise funds to set right this situation,'' he said.

Mr. Gupta said HCL had plans to exploit through opencast mining, the reserves at the nearby Chapri-Siddheswari mines. It had similar plans for the Banwas mines in Khetri in Rajasthan where HCL was operating some mines.

HCL had operations in Malanjkhand in Madhya Pradesh and a conversion unit in Taloja in Maharashtra.

Riding on improved market conditions, HCL is now not only eyeing increased profits but has also initiated the process of getting registered with the London Metal Exchange (LME) to get a better premium on its exports.

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