Talks On With Chile Firm Codelco For Concentrate Supply

Codelco, which owns one of the world's largest copper mines, has agreed to supplement the shortage in production of copper concentrate to HCL, if the latter signs a long-term agreement, an HCL executive said.

The decision comes in the wake of rising mining costs which is making production in India unviable.

Apart from raising the output of ore at its largest deposit at Khetri, the company is also on the lookout for other mines to develop.

A case is sub judice against the Bihar government following its refusal to renew a lease agreement for a mine at Ghatsila in south Bihar.

It is learnt that underground mining in the Chapari Siddheswar block would entail an investment of around Rs 300 crore. Hindustan Copper already owns the adjoining mines which include the Rakha and Kendadih mines in the Singbhum district for which lease contracts have been renewed for 20 years.

Kendadih mines are within the Indian Copper Complex in Ghatsila, whereas the Rakha mines comprise major blocks including the Rakha Mines block, the Roam Siddeshwar block and the Tama Pahar block.

The Indian Copper Complex leased 785.09 hectares for its Rakha project and another 1139.60 hectares for Kendadih. The other mines in this area include Mosabani, Pathargora, Chobri and Surda.

HCL, the sole producer of primary copper in the country, had earlier hired Robertson Research of Australia to study and prepare a feasibility report on exploration in the Chapari Siddeshwar block for which it had obtained necessary clearances from the union ministry of environment and the Indian Bureau of Mines, Nagpur.