Synopsis: Hindustan Copper Limited plans to expand its mining capacity from 4 MTPA to 12.2 MTPA by FY31, with a capex of Rs. 2,000 crores over the next 5-6 years through strategic partnerships.
During Friday’s trading session, shares of the first Indian PSU and only vertically integrated producer of refined copper in India surged nearly 14 percent on BSE, following plans to raise capacity by over threefold, capex of Rs. 2,000 crore lined up over 5-6 years.
With a market cap of Rs. 27,096 crores, the shares of Hindustan Copper Limited closed in the green at Rs. 280.2 on BSE, up by around 13 percent, as against its previous closing price of Rs. 248.55. The stock has delivered negative returns of around 11 percent in the last one year, and has gained by over 16 percent in the last one month.
Management Guidance
As per the latest exchange filings, Hindustan Copper Limited has outlined an ambitious capital expenditure and expansion roadmap in its corporate presentation. The company is currently implementing plans to increase its mining capacity from around 4 million tonnes per annum (MTPA) to 12.20 MTPA, with most of its copper concentrate supplied to domestic primary producers.
To achieve these targets, HCL is executing its mine expansion plan through significant capex and a Mine Developer and Operator (MDO) model, with capacity milestones set at 4.35 MTPA by FY26, 6.21 MTPA by FY27, 8.24 MTPA by FY28, 9.6 MTPA by FY29, and 12.2 MTPA by FY31.
The Kendadih mine is expected to add 0.225 MTPA by December 2025, while the Rakha mine, with a capacity of 3 MTPA, has already commenced pre-mining activities and is set to restart operations by Q4 FY26.
Over the next 5-6 years, HCL plans to invest around Rs. 2,000 crores in capex, supported by an expanded exploration budget that has added 123 million tonnes of additional copper ore reserves and resources in the past two years, with further additions expected.
The company is actively acquiring new copper deposits in India and abroad through upcoming mineral auctions and has entered into strategic partnerships, including a collaboration with Chile’s CODELCO for capacity building and knowledge sharing, as well as MoUs with public sector enterprises such as RITES, IOCL, Coal India Limited, and GAIL to expand its mining portfolio.
Financials & more
Hindustan Copper reported a marginal growth in its revenue from operations, showing a year-on-year increase of around 4.4 percent from Rs. 494 crores in Q1 FY25 to Rs. 516 crores in Q1 FY26.
Likewise, its net profit increased during the same period from Rs. 113 crores to Rs. 134 crores, representing a significant gain of around 19 percent YoY.Hindustan Copper Limited achieved a record production milestone at its Malanjkhand mine, with 2.725 million tonnes of ore extracted.
Hindustan Copper Limited, a ‘Miniratna’ company established in 1967 with 100 percent Government of India (GoI) ownership, is engaged in the business of exploration, exploitation, and mining of copper, along with minerals beneficiation, smelting and refining operations. Its primary business involves mining and processing copper ore into Metal-In-Concentrate (MIC).
HCL operates major copper mines and concentrator plants at the Malanjkhand Copper Project (MCP) in Madhya Pradesh, Khetri Copper Complex (KCC) in Rajasthan, and the Indian Copper Complex (ICC) in Ghatsila, Jharkhand.
Additionally, it also has smelting and refining facilities at ICC and the Gujarat Copper Project in Gujarat (GCP) for the production of copper cathode. These cathodes are further processed into copper wire rod at the Taloja Copper Project (TCP) in Maharashtra.
Written by Shivani Singh
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