After remaining non-operational for over 10 months, Hindustan Copper Ltd’s Surda mine in Jharkhand has resumed operation last week.

The mine production is expected to reach 1,250 tonnes per day (tpd) in August from the resumption level of 850 tpd, according to the mine operator Indian Resources Ltd, an Australian company.

HCL resolved its dispute with its mine operator after paying off ₹6 crore this month to IRL for its losses during the seven-month long closure of the mine.

Though HCL got permission of reopening of the mine in March, IRL had refused to recommence mine operations until it was compensated for the losses

The State Government ordered closure of mine early in September 2014 for absence of lease renewal.

The mine also lacked environmental clearance. Both the permissions were obtained in March. Non-payment to mineworkers had also caused unrest at the mine site during the closure period.

IRL had removed all its senior officers from Surda mine located in east Singhbhum district on safety concerns.

Resumption of the underground mine work took place after discussions with all stakeholders, including IRL, HCL, employees, creditors, Axis Bank and local authorities, IRL said.

Meanwhile, the dispute over the development of Surda mine extension is yet to resolve.

The mine closure period also disrupted the extension work.

HCL was hopeful of an early resolution of dispute between the contractor and the sub-contractor of the project.

HCL had taken up the project for developing new mines within the Surda and adjoining copper ore bearing lease areas.

Related Topics
comment COMMENT NOW