Government to monetize copper project and land assets
The government has decided to monetize Hindustan Copper’s (HCL) Gujarat Copper project in Jhagadia and some land assets in Indian Copper Complex (ICC) Ghatshila, which may give the company additional cash needed for expansion. mining.
HCL Chairman and Managing Director AK Shukla told FE that the Gujarat copper project was a secondary smelting process and needed to be shut down due to lack of waste. The smelter with a capacity of 50,000 tons per year with land assets of 74.2 acres would be sold as of right, while only the land assets measuring 16.96 acres of ICC were placed under the NPM.
“The 16.96 acres remained ideal for ICC. The unit was closed after HCL decided to temporarily suspend cathode production to focus on improving copper ore production and increasing of mine capacity. But ICC would restart operations once ore mining capacity reaches full capacity,” Shukla said. HCL plans to produce 12.3 million tonnes (mt) of copper ore from ‘here FY29, compared to 4 mt per annum currently.But HCL acquired Jhagadia Copper Complex and renamed it Gujarat Copper Complex in April 2015 and took it over for revival with an estimated investment of Rs 2,200 crore The factory revival was part of HCL’s Rs 6,000 crore investments by 2022, which it launched in 2016.
The company raised Rs 500 crore through the QIP route in April last year and used it mainly in expanding the underground mining project at Malanjkhand Copper Project (MCP) in Madhya Pradesh.
“The underground mine infrastructure for the extraction of 5 MTPA of ore is under construction under the MCP open pit,” Shukla said, adding that domestic institutional investors including insurance companies, mutual funds investment companies, banks and foreign institutional investors, participated in the QIP.
The company was able to reduce its borrowing from Rs 1,564 crore in March 2020 to around 600 crore at present, he said.