Hindustan Copper Ltd is likely to award soon a Rs 680 crore turnkey contract for installation of ore beneficiation unit and complete ore handling facility for its 5 million tonne per annum (mtpa) proposed underground mine project in Malanjkhand in Madhya Pradesh.

This work was left out after mine erection, development and construction job of the country’s biggest underground copper mine project was allocated a cople of months ago.

The HCL board in November had approved the award of a Rs.1,176.12 crore EPC contract to a consortium of IVCRL Infrastructure & Projects Ltd, MCC Donetskshakhtoprokhodka Ltd (MCCDL) of Ukraine, Teknomin Constructions Limited (TCL) and Davy Markham Limited (DM) of UK.

Mr Shakeel Ahmed, CMD of HCL said preparation for assigning the work was on. According to sources, the second contract may go a public sector engineering firm’s way.

The mine development is expected to start after three months. HCL has commenced the process for obtaining fresh environmental clearance for the underground project. It is located 20 km away from the Kanha National Park. “Public hearing took place on January 6”, Mr Ahmed said.

The project, to be financed by internal accruals, would be carried out in two phases – the first one is to complete by the end of 2014-15 and the second by the close of 2016-17. The ore beneficiation and handling equipment installations are to coincide with completion of the first phase work.

According to HCL estimates, “Malanjkhand has extractable copper bearing ore reserves of 141 million tonnes, which is more than 70 per cent of the known reserves in the country”.

The underground mine development plan envisages sinking of 4 shafts in the current extraction area without affecting the open cast operations. The targeted extraction depth is 300 metres for the project.

>jayanta_mallick@thehindu.co.in