KOLKATA: Hindustan Copper Ltd (HCL) would invest about Rs 900 crore to develop two greenfield copper mining blocks in Jharkhand and Rajasthan.
"The Chaprisideshwar block in Jharkhand would require about Rs 600 crore and Banvas in Rajasthan would require around Rs 200-300 crore," HCL chairman and managing director S C Gupta said on Thursday.
"The Chaprisideshwar would be developed through a joint venture as it has a reserve of 80 million tonne, while for Banvas, it would be a mining contract," he said on the sidelines of tri-lateral mining seminar here.
The process to finalise the JV would be done once the lease was awarded. Details of the holding pattern was yet to be worked out, Gupta said.
HCL has planned to float a SPV for all greenfield mining activities with a joint venture partner.
The company has tied up with Monarak Gold Group of Perth (Australia) to reopen the Surda mines and Mosabani Plant in Jharkhand.
"It's a fixed price mining contract for Surda," Gupta said.
HCL is also looking for partnerships to revive and reopen its four mines in Jharkhand, which together hold a total reserve of 50 million tonnes of copper.
The company currently has four operating mines, with a total production of 40,000 tonnes last year.
"We expect to produce 42,000 tonnes this year and are targeting a turnover of Rs 2,000 crore. However, Rupee appreciation and a subdued London Metal Exchange price might make things difficult," Gupta said.
