September 08, 2008

HCL to invest INR 900 crore for 2 Greenfield copper blocks

It is reported that Hindustan Copper Limited would invest about INR 900 crore to develop 2 Greenfield copper mining blocks in Jharkhand and Rajasthan.

Mr SC Gupta CMD of HCL said that “The Chaprisideshwar block in Jharkhand would require an investment of about INR 600 crore and Banvas in Rajasthan would need around INR 200 to INR 300 crore. Chaprisideshwar would be developed through a JV as it has reserves of 80 million tonnes, while for Banvas, it would be a mining contract.” He added that the JV would be finalized once the lease was awarded and details of the holding pattern were yet to be worked out.

Mr Gupta said that “We expect to produce 42,000 tonnes this year and are targeting a turnover of INR 2,000 crore. However, the rupee appreciation and a subdued London Metal Exchange might make things difficult.”

HCL has planned to float a SPV for all Greenfield mining activities, along a JV partner. It has tied up with the Monarak Gold Group of Perth in Australia to reopen the Surda mines and Mosabani plant in Jharkhand. HCL is also looking for partnerships to revive and reopen its 4 mines in Jharkhand, which together hold total reserves of 50 million tonnes of copper. It has 4 operating mines, with a total production of 40,000 tonnes.