Kolkata | Jun 08, 2016:

Hindustan Copper's mine at Surda, located located in the country's prime copper producing belt in Jharkhand seems to be jinxed.

Post the reopening of the mine exactly a year back, the mine, being operated by a Perth, Australia based India Resources Ltd, is set to face closure following a lingering tussle between the state-owned copper mining monopoly and its foreign contractor.

India Resources has threatened to stop production beginning Thursday unless the Kolkata-headquartered sole copper miner in the country starts paying up for its output.

The dispute has even reached the court recently which has directed payments by Hindustan Copper.

"IRL has formally requested that HCL comply with the terms of the Surda work order and the court order by making payment of outstanding invoices and claims, and to also recommence accepting copper concentrate production. If HCL is unwilling to comply with these requests, IRL may be forced to suspend operations at the Surda mine and the Mosaboni concentrator by June 9," the Aussie contract miner said.

While adding that a meeting was held between HCL and IRL on Saturday and that the state-owned company is considering the latter's requests, IRL has threatened to more court.

"Unless HCL immediately complies with these requests, IRL will move to the Kolkata High Court to seek an order that HCL makes immediate payment of outstanding invoices and acceptance by HCL that it will commence receiving concentrate in accordance with the work order," the statement said.

Hindustan Copper aim to raise its production capacity three-fold from 4 million tonne to touch 12 million tonne by FY 2017-18 by executing projects including the expansion project for the Surda mine.

While the tussle between Hindustan Copper and its contractor is long drawn, the latest trigger for the face-off is being seen as the change in the name of Swan Gold Mining, IRL's parent, into Eastern Goldfields Ltd.

While IRL, to which the mining was sub-contracted by Swan, said the name change is not being recognised by HCL, sources within HCL said they need more time to recognise and account for this development.

While the issue lingers on, output at Surda, which in March quarter was 94,330 tonne, and fate of 1,400 workers remain uncertain.

Meanwhile the government on June 23 is set to take up the approval of environmental clearance for the expansion of Surda under which the mine would be expanded from 0.39 million tonne a year to 0.9 million tpa over an area of 388.68 hectare.

(Source: http://www.dnaindia.com/)