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State-owned Hindustan Copper Limited (HCL) has signed a significant milestone with the execution of an extended lease deed for the Rakha copper mine, allowing operations to continue for the next 20 years. This development marks a strategic boost in India’s copper mining sector and signals the long-awaited revival of mining activities at Rakha after a hiatus of more than two decades.
Key Details of the Lease Extension and Mining Operations
The mining lease deed for Rakha covers approximately 785 hectares in East Singhbhum district, Jharkhand, and has been extended by the Government of Jharkhand until June 2043. The agreement follows environmental clearances granted by the Ministry of Environment, Forest and Climate Change (MoEF&CC) and reflects HCL’s commitment to sustainable and responsible mining practices.
Operational plans anticipate an ore production capacity of around 3 million tonnes annually, commencing phased mining operations expected within the next fiscal years. The mining lease ensures a steady supply of copper ore crucial for India’s industrial and infrastructure needs.
Significance for India’s Copper Industry
Rakha is one of India’s oldest copper mines and its revival is poised to reduce dependence on copper imports, which currently form a significant portion of the metal consumption. With growing domestic demand in sectors such as electric vehicles, renewable energy, telecommunications, and construction, resumption of Rakha mining aligns with India’s push for self-reliance and resource security.
HCL’s operational expansion plans include state-of-the-art concentrator plants matching the mining capacity, reinforcing the company’s integrated approach from mining to refining.
Strategic Partnerships and Revenue Model
Hindustan Copper has entered a revenue-sharing agreement with JSW Group’s South West Mining Ltd (SWML) as the mine developer and operator (MDO) responsible for mine development and management. HCL retains a 12.5% revenue share, leveraging the MDO model to optimize operational efficiency and capital expenditure.
The contract includes an option for further extension, enhancing flexibility for long-term planning and market responsiveness.
Financial and Market Impact
The lease extension and recommencement of Rakha mining are expected to contribute significantly to HCL’s order book and revenue projections. The company reported a net profit of ₹134 crore in Q1 FY26 and anticipates further growth driven by increased mining volumes and favorable global copper price trends.
Market analysts view this lease renewal as a game-changer for HCL, positioning the company to capitalize on the Indian government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives by boosting domestic metal production.
Environmental and Community Considerations
HCL emphasizes eco-friendly mining operations with robust rehabilitation and community development programs in Jharkhand. The company is committed to maintaining ecological balance while facilitating local employment and infrastructure development.
Sources: Bihar Jharkhand News Network, CNBC TV18, Official announcements by Hindustan Copper Ltd
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