Hindustan Copper to hike capacity; divestment on track
15 May 2010
Government-owned Hindustan Copper Ltd (HCL), the country's sole copper miner, has firmed up plans to increase the capacity at its Malanjkhand open pit mine from two million tonnes per annum to 5 mtpa, while also getting a lease to explore a new mining area in Rajasthan.
Shakeel Ahmed, chairman and managing director of the company, said in Kolkata on Friday that the HCL board has cleared the expansion programme of Malanjkhand mine, but this is only the first step towards the project's implementation.
"This proposal will go to ministry now and then to the Planning Commission. After the planning commission's clearance it will go the Public Investment Board," Ahmed told newspersons after a board meeting.
He said an investment of Rs2,500 crore has been estimated as of now and the company is inclined to execute it with a partner on a risk-sharing basis. After expansion, Malanjkhand would be India's deepest base metal mine, he added.
Ahmed also said the union cabinet is likely to approve the plan to divest a 20 per cent stake in HCL within the next two weeks. He said all concerned ministries have approved the plan, and the proposal is now with the law ministry, which is likely to clear it in a day or two.
The lease for exploring a new mining area, Banwali Ki Dhani, in Rajasthan has been recently approved by the Rajasthan government and HCL would shortly start exploring it. Ahmed said the new lease has two areas - one 36.1 sq km and the other 1,207 sq metres, with an estimated (Geographical Survey of India estimation) reserve of 85 mt. HCL might go for a joint venture to develop the mine.
