Govt to auction 12 copper mines, expects 15 mt of ore supply

The Government plans to auction 12 copper mines in the next one year in order to ensure ore supply of 10-15 million tonnes (mt). Currently, Hindustan Copper is the only company that has a captive copper mine while other companies import copper concentrate, which is converted into copper cathode and rods.

Speaking at the India Copper Forum here on Wednesday, Balvender Kumar, Secretary, Ministry of Mines, said the Government has identified five copper mines in Gujarat, three in Rajashthan, and four in Maharashtra for auctioning.

Of these, he added, prospecting licences have been issued for two blocks in Maharashtra and one in Rajashthan with 11 million tonnes of copper ore, which will be auctioned by February.

This would result in supply of 10-15 million tonnes of copper ore in India. In addition, another 15 coal blocks have been explored and will be auctioned in one year, he said.

"The Government is keen to attract private investment in exploration and will be finalising the new national exploration policy by January," said Kumar.

The Government will have Rs 450-500 crore in the National Mineral Exploration Trust by the end of next year. According to the new Mines and Mineral Development Act mining companies have to contribute two per cent of royalty to the Trust for facilitating exploration. 

"The Government has identified a copper mine with 26.3 mt reserve and trace of 1.3 to 1.5 mt of gold and silver in Alwar district in Rajashthan. This will be auctioned in one year. We have found mineral trace over 60,000 square km in Rajashthan, Madhya Pradesh and Jharkhand. Of this, 1.5 mt of copper reserves have been established over 20,000 sq km and more mineral ore can be extracted if the remaining area is explored," he said.

The Government is also considering an amendment to the new Mines and Mineral Development Act to allow transfer of captive mines in case there is an asset sale.

JP Group’s bid to sell its two cement plants to UltraTech Cement and Birla Corp has been delayed as the new law does not allow transfer of limestone lease with the sale of asset.

"Though the amendment would not happen anytime soon, it is being discussed at various levels," said Kumar.

On the industry demand for anti-dumping duty on copper, Ravi Capoor, Joint Secretary, Ministry of Commerce and Industry, asked the industry to push for safeguard duty as was done in the case of steel.

Going by the import data, Capoor said there is a clear case for safeguard on copper  plates and tubes and if the industry can bring up their case to Government “we will respond to it in two months”.

Instead of pressing for safeguard, the industry should work on various quality and energy efficiency standards which the exporting countries were not meeting and convince the Government to notify them, he said.

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