Copper Mines in Focus: JSW Steel and Hindalco Compete in Strategic Jharkhand Auction

JSW Steel and Hindalco Industries are vying for control of two copper mines located in Jharkhand. The auction is scheduled for October. The goal of Hindustan Copper is to decrease imports and increase copper production. While the other mine has been shut down for twenty years, the first is brand-new. The business is trying to grow its mining companies.

According to reports, Aditya Birla Group company Hindalco Industries and Sajjan Jindal-led JSW Steel are competing for two Jharkhand copper mines that will go up for sale this month. Both mines have a total capacity of three million tons per annum. According to reports, Hindalco Industries and JSW Steel would compete for control of the two copper mines in Jharkhand controlled by state-owned Hindustan Copper Ltd.

It is anticipated that both mines will be auctioned off in October. One of these blocks is unoccupied, but the other has been closed for the last 20 years. In order to develop and operate the underground mine at Chapri as well as reopen and expand the Rakha Copper Mine, Hindustan Copper has previously requested applications for the position of mine developer-cum-operator (MDO).

In a recent article, Hindustan Copper stated that negotiations with the Jharkhand government are underway to extend the mining lease time for Rakha, which expires in 2021. Additionally, the Project Screening Committee has approved the proposal for the award of stage one forest clearing for the remaining forest area inside the mining license. The State Forest Department's different officials have finished inspecting the location.

Hindustan Copper's CMD, Ghanshyam Sharma, has stated that the company is undertaking expansion initiatives to boost mine output capacity to 12.2 million tonne annually. This action will increase domestic copper output and lessen reliance on imports. The company's ore output increased by 13% to 3.78 million tonnes in FY24 from 3.35 million tonnes in FY23.

The current Malanjkhand Copper Project (MCP) capacity expansion project, which entails developing an underground mine beneath the current open cast mine, would increase ore production capacity from 2.5 MTPA to 5 MTPA. The ore output from the open cast mine has now been depleted and the underground mine is working below the existing open cast mine leaving some barrier pillars.

Under the administrative jurisdiction of the Ministry of Mines, Hindustan Copper is the only vertically integrated firm that produces refined copper and is also the owner of all active mining leases for copper ore.

To Summarize

JSW Steel and Hindalco Industries are set to compete for two copper mines in Jharkhand, with the auction scheduled for October. Managed by Hindustan Copper, one mine is a newly developed site, while the other has remained closed for over 20 years. Hindustan Copper aims to decrease India’s copper imports by expanding its production, with both mines holding a combined annual capacity of three million tons. To further enhance copper output, the company is progressing on the Malanjkhand Copper Project, which will increase ore capacity from 2.5 MTPA to 5 MTPA, reducing import dependency and fueling India’s copper industry growth.