Hindustan Copper to reopen Jharkhand mines

Taking forward its mega Rs 4,500 crore expansion programme, state-run Hindustan Copper (HCL) today said it will reopen its closed copper mine at Singhbhum, in Jharkhand, by 2013.

The move to reopen the mines comes ahead of the company's 20 per cent share sale programme slated for November-December this year, which is expected to raise Rs 4,000 crore.

"The Kendadih mines, which have been closed since 2000 will be made operational by March 2013," a company official told PTI.

 The mines spread across 1,140 hectares has 17.84 million tonnes (MT) of ore reserves.

The copper major has already invited bids for revival of the mine, he said.

HCL has said that it is taking steps to develop new mine in potential copper deposits in the country to enhance output from the current 3.15 million tonnes per annum (MTPA) to 12.5 MTPA in the next five to seven years at a cost of about Rs 4,580 crore.

The company is also eyeing copper assets in countries like Chile and Namibia, Afghanistan, besides forging alliance with another mining PSU Nalco.

The company has also 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.

Already, 0.41 per cent HCL stake is with the public. The proposed FPO will see the government's stake coming down to 81.45 per cent from 99.59 per cent at present.

Mines Minister B K Handique had earlier said the share sale could generate around Rs 4,000 crore.