Hindustan Copper to float tender for Rakha Copper Mine Expansion

Hindustan Copper (HCL) plans to issue a tender in mid-July 2023 to appoint a mine developer-cum-operator (MDO) for the reopening and expansion of the Rakha Copper Mine in Jharkhand. The project is expected to require a capital expenditure of approximately Rs 20 billion, which will be allocated over the coming years.HCL's Board has recently approved a qualified institutional placement (QIP) of Rs 5 billion and non-convertible debentures (NCD) of Rs 5 billion, subject to shareholder approval. The company anticipates a 10 per cent increase in production during the current fiscal year.Furthermore, the government of Jharkhand has granted permission for the renewal of the lease for the Rakha mine, which had been closed since 2000. However, the project still needs to undergo various statutory processes, including obtaining environmental and forest clearances.HCL has committed a total investment of around Rs 4.5 billion for the expansion and development of mines during the ongoing fiscal year. Additionally, the government has recently published a list of 30 critical minerals, including copper. Currently, India holds only about 0.3 per cent of the world's copper reserves.