HCL to ramp up Malanjkhand production, sets Rs 350-cr capex target for FY23

Hindustan Copper Ltd (HCL) was ramping up copper ore production from the Malanjkhand project in Madhya Pradesh to 2.2 million tonnes from the current 1.6 million tonnes and it will be eventually increased to five million tonnes in the next 6-7 years, a company official said.

HCL was targeting to increase its total copper ore production to 12.2 million tonnes per annum by FY'29 in its first phase of expansion from 3.57 million tonnes in FY22 and was targeting 3.9 million tonnes in the current fiscal.

The state-owned integrated copper miner said it has lined up Rs 350 crore in capex for the current fiscal and of that, Rs 250 crore would be pumped into the Malanjkhand project. HCL was also awaiting lease renewal from the Jharkhand government to reopen the Rakha mines which was closed in 2001-02 due to operational reasons.

"Our capex for the current fiscal is Rs 350 crore and we are expecting to exceed. There is a shortfall in production from Malanjkhand due to difficult terrain, but this year it will come up in shape. We are looking at 2.2 million tonne ore production from 1.5-1.6 million tonne of output now," said an HCL board member who does not wish to be quoted.

"This year both open cast and underground mining (UG) is taking place but from the next fiscal, the entire production will be from UG mining. We want it to ramp up production to five million tonnes in the next 6-7 years," he said.

With the government targeting to increase domestic mineral production, HCL seeks to re-open the Rakha mine in Jharkhand which has a peak rated capacity to produce 3 million tonnes.

"We have already applied with the Jharkhand government and are waiting for the renewal of the mining lease. The mining plan has also been approved by the government," the official stated.

The other copper mines are Khetri Copper Complex in Rajasthan, Indian Copper Complex at Ghatsila, Jharkhand, Taloja Copper Project in Maharashtra and Gujarat Copper Project.