KOLKATA, March 23: State-owned Hindustan Copper aims to generate around Rs 2,400 crore revenue over the next 20 years from its recent contract with a JSW Group firm which has been appointed as a mine developer and operator for two blocks in Jharkhand, a top company official said on Sunday.
JSW Group’s South West Mining Ltd (SWML) secured a contract on a revenue-sharing basis in January through a competitive bidding process for Rakha copper mining, comprising two blocks – Rakha and Chapri – in Jharkhand, for a period of 20 years, extendable by another 10 years.
“The contract is an important development and key to the revival of Jharkhand operations. It is on a revenue-sharing basis. We estimate earning a revenue of around Rs 2,400 crore over the next 20 years,” Hindustan Copper Chairman and Managing Director (CMD) Sanjiv Kumar Singh told PTI in his first interaction after assuming the charge.
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Singh, who took over as the chief of the Kolkata-based PSU on Friday, was the director (mining) since 2022 and was also holding additional charge of director (operation) until early March.
He began his career at CMPDI and has also worked with power major NTPC Ltd.
Singh has 38 years of experience in the mining domain.
Among the two copper blocks, Rakha is an old one that was closed around two decades ago, while Chapri is a greenfield project. Both mining blocks fall under a single mining lease owned by Hindustan Copper Ltd.
On full-scale ramp-up, the Rakha mine is expected to have an ore capacity of three million tonnes per annum (MTPA) and is likely to become partially operational in the second half of 2026-27, according to a statement from SWML.
According to the agreement, the MDO will do the mine development, capital expenditure, and operational management, including setting up and operation of the matching capacity concentrator plant.
Appointing an MDO on a revenue-sharing basis is an asset-light model and a win-win proposition, the official said.
Hindustan Copper will provide technical support and receive a percentage of the revenue generated, he said.
With the increasing demand for copper in sectors such as electric vehicles, renewable energy infrastructure, construction, electronics, telecommunications, and healthcare, this project presents a significant opportunity, Singh said.
India is currently a major importer of copper concentrate, and the initiative aims to support the country’s industrial growth while reducing dependency on imports, he added. (PTI)
