Hindustan Copper seeks Centre’s nod for copper plant

The Dollar Business Bureau

State-owned Hindustan Copper Ltd (HCL) said on Monday that the location for its copper concentrate project in Chhattisgarh worth Rs.2,200 crore has been finalised and it will seek the approval of Centre for the same.

“We have approved the hydrometallurgy plant in Chhattisgarh, which is near Malanjkhand. The project cost will be Rs.2,000-2,200 crore and we will need the Cabinet’s approval for the project,” K D Dewan, Chairman and MD, HCL said.

The PSU has shortlisted two foreign firms, from Finland and Israel, for the new green technology that would for the first time be used for extracting metal via chemical process, in place of heat.

HCL has set aside Rs.6,000 crore as total capital expenditure (capex) for the next 5 years and this would be mobilised with a combination of equity and debt. The company has invested Rs.400 crore, this year.

The company would also establish a Nickle project with an expected cost of Rs.1,700 crore, which is likely to generate a revenue of Rs.1,200 crore.

“HCL has the capability to start commercial production at its sick copper plant in Gujarat at 50 percent capacity, which by next financial year could be enhanced to full installed capacity, supporting the copper producer to create additional Rs.1,500 crore revenue at present copper prices,” said Dewan.

He expected that the prices of copper will improve but with rise in imports the domestic market can come under pressure.

“Imports of copper have surged by 30 percent and with Free Trade Agreements (FTAs) signed by India, we expect more imports. However, we, as an industry together with the downstream players, have sent a petition to the Central government to levy safeguard duty for stopping rampant imports of copper,” he said.