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Hindustan Copper Ltd has overcome a major hurdle in recommencing its ₹210-crore Surda mine expansion project work, which was suspended for months because of a dispute between the lead contractor and the sub-contractor.
According to sources, the project work is expected to begin from January. The principal project contractor Sriram EPC (SEPC) and sub-contractor Indian Resources Copper Mining (P) Ltd (IRCMPL), have ended their stand off through a settlement.
Settlement Hindustan Copper has decided it will allow an extension of time until 2018 for completion. The settlement involves a payment of ₹1.60 crore by SEPC to IRCMPL. The expansion project at the operating underground mine in Jharkhand had run into several problems, including the standoff between the project contractor and sub-contractor.
The expansion will allow an additional life of the mine up to five years and enhance Surda mine’s yearly production capacity from 0.4 million tonne per annum to 0.9 million tonne.
The Australian Stock Exchange-listed Indian Resources Ltd, the principal of IRCMPL, operates Surda mine. The expansion project development will run concurrent to the existing mine operations.
The Jharkhand Government had stopped the Surda mine operation and its expansion project work over the mining lease renewal issue, during a nine-month period since September 2014 until mid-June this year.
Hindustan Coper had last year suffered from a 20 per cent fall in copper prices as well 21 per cent fall in copper grade from its open cast mine at Malanjkhand in Madhya Pradesh, which contributes around 65 per cent of the company’s ore production.
Other projects Implementation of another proposed plan to develop an underground mine Malanjkhand (below the existing open cast mine) to increase copper ore production from 2 million tonnes per annum (mtpa) to 5 mtpa at an estimated cost of ₹1,856.74 crore is also behind schedule. The mine expansion work in Rajasthan, particularly of Khetri and Kolihan deposits, are also slow. However, development exercise for Banwas deposit, near Rajasthan is expected to be completed later this year.
The expansion at Khetri and Kolihan and the development of Banwas deposit are estimated to increase ore production from 1 mtpa to 3.1 mtpa from Hindustan Copper’s Rajasthan licenses.
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