Hindalco and JSW Steel Battle for Jharkhand’s Copper Mines: 3 Million Tonne Capacity at Stake

Hindalco Industries, part of the Aditya Birla Group, and JSW Steel, led by Sajjan Jindal, are both competing for two copper mines in Jharkhand, according to sources. These mines, owned by Hindustan Copper Ltd, have a combined capacity of producing three million tonnes of copper per year.

Auction Expected in October

The auction for these two mines is expected to take place in October. One of the mines is completely new, while the other has been closed for the last 20 years.

Hindustan Copper’s Plans for Reopening

Hindustan Copper had previously invited applications for a mine developer and operator (MDO) to help reopen and expand the Rakha Copper Mine, as well as to develop and manage the underground Chapri Mine.

Lease Extension and Forest Clearance

In a recent report, Hindustan Copper mentioned that the lease for the Rakha Mine expired in 2021, and they are currently working with the Jharkhand government to extend it. The company has also applied for forest clearance to use the remaining forest area within the mining lease, and the application has passed the initial stages of approval.

Expansion to Boost Production

Hindustan Copper is working on expanding its projects to increase its total production capacity to 12.2 million tonnes per year. In the 2023-24 financial year, the company produced 3.78 million tonnes of copper ore, a 13% increase from the previous year.

Malanjkhand Copper Project Development

At the Malanjkhand Copper Project (MCP), Hindustan Copper is developing an underground mine to increase ore production from 2.5 million tonnes per year to 5 million tonnes. The surface mine at this location has already exhausted its resources, and operations have now moved underground.

Reducing Dependence on Imports

Hindustan Copper, which is managed by the Ministry of Mines, is the only company in India that is fully integrated in copper production, handling everything from mining the copper ore to refining the metal. This expansion is expected to boost India’s copper production and reduce the country’s reliance on imports.