The Hindu Business Line : Hind Copper plans joint venture for Banwas mine

Kolkata, Aug. 10 Public sector Hindustan Copper Ltd (HCL) plans a joint venture with a foreign partner to develop the Banwas copper mine in order to increase ore production of the Khetri Copper Complex in Rajasthan, according to Mr S.C. Gupta, Chairman and Managing Director, HCL.

The company, which appointed AT Kearney as consultants, has short-listed five companies from which it plans to choose its partner by November this year. “We have short-listed three Australian companies, one UK based company and a Swedish company for the proposed joint venture,” Mr Gupta told Business Line without giving any further details.

Ore reserves

The investment, estimated at Rs 100-120 crore, is likely to be borne by the foreign partner, he added. The Banwas block has ore reserves of over 22.5 million tonnes at 1.6 per cent copper and is expected to be operational in the next 18-24 months.

According to Mr Gupta, the company also has plans to reopen the closed mines in Jharkhand including the one at Surda where HCL has signed up with Australian mining company Monarch Gold for carrying out mining activity.

Besides, HCL is looking at development of Chapri Sideshwar copper deposit in Singhbhum copper belt with estimated ore reserves of 80 million tonnes at 1.14 per cent copper.

The company is also mulling foray into mining of gold and other metals in India and is open to acquisition of copper mines abroad, Mr Gupta said.

Restructuring

The Centre has recently approved a financial restructuring package for HCL to wipe out its accumulated losses. During the current fiscal, HCL plans to invest Rs 150-160 crore towards mine development and replacement of old machineries.

HCL’s profit before tax (PBT) during 2006-07 was Rs 330 crore. The company expects PBT of nearly Rs 400 crore during the current fiscal, Mr Gupta said.

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