Hind Copper to reopen another J'khand mine

As part of its mega expansion programme, state-owned Hindustan Copper is set to reopen another closed copper mine in Jharkhand, with estimated coal reserves of about 34 million tonnes.

As part of its plans to ramp up its annual production capacity to 12.5 million tonnes from 3.15 million tonnes in the next 5-7 years, the company has outlined a new growth strategy, which includes reopening of closed mines.

According to the company's website, "Hindustan Copper proposes to engage reputed contractors for reopening, operation and expansion of Rakha mine (East Singhbhum, Jharkhand)."  Post-opening the company plans to mine 1.5 million tonnes of copper ore per annum.

The development follows a similar plan of the company to reopen closed Kendadih copper mine in the state. Both the moves towards resuming mining operations come ahead of it's 20 per cent share sale programme slated for November-December, which is expected to raise Rs 4,000 crore.

Mining operations in Rakha were suspended in July 2001, after it was waterlogged and the company has invited expression of interest from interested parties, the bids for which would be closed on November 30.
    
The commissioning of the Rakha mines is expected in the next few years while the entire Rs 4,500 crore expansion programme to take its production to 12.5 MTPA from 3.15 MTPA is likely to be completed by 2017.
    
Under the expansion plans, the company will increase the capacity of Malanjkhand mine in Balaghat district of Madhya Pradesh from 2MTPA to 5 MTPA and Khetri copper complex in Rajasthan from 1 MTPA to 3 MTPA.
    
The PSU also plans development of new mines besides re-opening of closed mines at Singhbhum copper belt, Ghatsila in Jharkhand to produce 3.7 MTPA copper.
    
It has also invited bids for prospecting of the Baniwali-Ki-Dhani (copper) mine in Sikar district of Rajasthan, for which it was recently granted such licence.
    
The company is also eyeing copper assets in countries like Chile and Namibia, Afghanistan, besides forging alliance with another mining PSU Nalco.
    
It filed the draft prospectus for 20 per cent share sale, through which the government is selling 10 per cent stake, while the company would issue fresh equity in the same proportion.
    
At present, 0.41 per cent of HCL stake is with the public. The proposed FPO will see the government's stake coming down from 99.59 per cent at present to 81.45 per cent.
    
Mines Minister B K Handique had earlier said the share sale could generate around Rs 4,000 crore.