Calcutta | Sept. 26, 2016: Hindustan Copper Ltd (HCL) is planning to extract copper with a new technology in collaboration with a Finnish company at an estimated investment of Rs 2,200 crore.
The state-run company's board today gave an in-principle approval for a processing unit on the Madhya Pradesh-Chhattisgarh border near the PSU's Malankhanj facility. The unit is expected to come up in three years.
"We are going to install the hydro-metallurgy technology to process sulphide copper concentrate and produce copper cathode. The results of the pilot test conducted with the proposed technology have been successful and capex and opex are lower than the conventional technology for the volume of production considered. Based on the above technology, we intend to build a plant with a capacity of one lakh tonne per annum to manufacture copper cathode," HCL chairman and managing director K.D. Diwan said.
The venture will require the approval of the cabinet committee on economic affairs as the company can commission a project only up to Rs 500 crore. In India, most of the copper ores have sulphide in them.
The project is part of HCL's long-term plan to hedge itself against volatility in international prices.
The company skipped dividend last year because of a decline in profit in the aftermath of price correction and in view of a cash conservation ahead of the expansion programmes.
This year, HCL plans to invest Rs 400 crore in the exploration of mineral deposits, development and expansion of existing mines and rehabilitation and resettlement work. It is soon going to get environment clearance to develop the Rakha mines near Ghatshila.
(Source: http://www.telegraphindia.com/)