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The Ministry of Mines, through Hindustan Copper, has approached the Jharkhand government seeking necessary clearances and renewing lease so that mining operations can resume at Rakha lease area. There has been no response from the Jharkhand government, on this so far, a senior Ministry official told businessline.
Rakha and Kendadih mining area is said to be amongst the largest copper mines of the country; while copper is categorised as a strategically important mineral in India.
Incidentally, Hindustan Copper, a CPSE under the Mines Ministry, has already initiated the process of appointing a mine developer-cum-operator, primarily on a revenue sharing basis, Ministry officials said.
The company’s last annual report (for FY22) mentions that plans are on to augment production capacity to 1.5 million tonnes per annum (mtpa) of ore by reopening and expansion of closed Rakha mine. The environment clearance and Stage II forest clearance for the mining lease area were obtained in 2014 and 2016 respectively. But the mining lease expired on August 28, 2021.
An application for renewal (of lease at Rakha) was submitted to the office of District Collector, Government of Jharkhand in April 2020. The matter continues to be pending with Director, Mines, Government of Jharkhand.
The last mining plan of Rakha lease (till 28.08.2021) covered an area of 785.091 hectares, that was approved by Indian Bureau of Mines.
“The Jharkhand government is yet to give clearance, that is, renew the lease for the Rakha mines. Hindustan Copper have approached them and the application is under process there,” the Ministry official said.
Engaging MDO
Meanwhile, Ministry officials said, the CPSE (Hindustan Copper) has already initiated the process of appointing a mine developer – cum – operator (MDO), as it plans for “re-opening and expansion of Rakha Copper Mine and the development of a new underground mine at Chapri-Sideshwar to produce 3 million tonne per annum of ore” along with a matching capacity concentrator plant.
The tender document was floated in January 2023 and applications were closed in March.
The bid papers mention, operation of Rakha mine was discontinued from July 2001, due to low copper prices. The mine is currently waterlogged and non-operating. On the other hand, Chapri deposit, adjacent to the Rakha mine, is a “virgin block” and needs to be developed and operated.
The MDO has to develop the mine and concentrator plant at his own cost and to mine at the designed capacity and concentrate the ore as per established standards. Combined production across Rakha and Chapri will be 3 mtpa. The run-of-mines (excavated from the mines) copper ore will be processed at the concentrator plant.
The copper concentrate should be of minimum 25 per cent copper grade with maximum 8 per cent moisture content. The recovery of the concentrator plant should operate at minimum 94 per cent recovery.
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