R Krishna Das
The sharp increase in the International copper price had come as an advantage for India eyeing a major capacity expansion.
The price of copper had increased by over 40% in the last four months despite adverse economy post outbreak of the Covid-19 pandemic. Surpassing $6,000 a tonne in June, the copper price is currently ruling at a level which is the highest in the last 16 months.
The price increase was because of the scarcity of the non-ferrous metal following lower mine output. The pandemic is estimated to have resulted in a sharp drop in the production of copper ore during Q2 CY2020, which resulted in a shortage of the metal.
Almost 50% of the copper ores mined globally originates in South America, which has been severely impacted by the pandemic. In the domestic market, Hindustan Copper Limited (HCL) is the only copper miner and Hindalco Industries Limited (Hindalco) is currently the only operating copper smelter-cum-refiner in the country. “Under the prevalent situation, HCL is likely to benefit from the buoyant price levels,” opined ICRA.
The State-owned Hindustan Copper Ltd (HCL) plans to reap the benefits by expediting ore output capacity to over 20 million tonnes per annum (MTPA) in two phases. “The company will enhance its ore production capacity from the current level of 4 MTPA to 12.2 MTPA in the first phase, and subsequently to 20.2 MTPA, in line with the government’s ‘Aatmanirbhar Bharat’ initiative,” HCL chairman and managing director Arun Kumar Shukla told news agency PTI.
He said all statutory clearances are in place for the first phase of expansion. Kumar said three-fold rise in ore production under first phase is expected to be achieved in next seven to eight years and this includes a major shift from open pit mining to underground mining at Malanjkhand Copper Project (MCP) — the flagship entity of the HCL established in 1982.
Open pit mine with a capacity of 2 MTPA, MCP is the single largest copper deposit of India with nearly 70% of the country’s reserve and contributing around 80% to HCL’s total copper production.
