Hindustan Copper Revives Rakha Mine After 20 Years

10 Jan 2025 , 12:57 PM

Hindustan Copper Ltd. (HCL) reopened the Rakha Copper Mine at East Singhbhum, Jharkhand, which has been closed for more than 20 years. It had been kept out of operation since 2001 as the operation was decided to be non-feasible. Now, the mine is to be planned for its development and expansion. South West Mining Ltd. (SWML) has been assigned as MDO for the project.

Re-opening and expansion of Rakha Mine and development of new underground mine at Chapri shall be undertaken and commissioning of a modern concentrator plant would be done. Agreement between HCL and SWML is 20 years’ one with further possible extension by 10 more years. A memorandum of agreement related to mining services was inked on 9 January at Ranchi, which included the participation of Union Minister of Coal and Mines G. Kishan Reddy along with top executives of HCL and SWML.

On 25 November 2024, the project had been provided with a Letter of Award (LoA) for awarding it to SWML. CAPEX estimated to be around ₹2,700 crores.
About 10,000 employment opportunities, direct as well as indirect. This project will represent HCL’s endeavors toward expanding copper production in India based on the domestic requirement.

In Q2 FY2024, HCL reported a net profit of ₹101.7 crore. It was up by 67.6% year-over-year from the same quarter last year, when it was ₹60.7 crore. Revenue from operations grew up by 36%, at ₹518.2 crore compared with ₹381.4 crore in the year-ago period.