Synopsis:
Hindustan Copper secured a 20-year lease extension for Rakha Mine, a vital step toward reopening and expanding one of its key assets to boost India’s domestic copper production.
During Monday’s trading session, shares of the first Indian PSU and only vertically integrated producer of refined copper in India witnessed a sharp rise of nearly 8 percent on the stock exchanges. What triggered this steep rise? Let’s break it down in this article.
With a market cap of Rs. 28,658 crores, the shares of Hindustan Copper Limited closed in the green at Rs. 296.35 on BSE, up by around 5 percent, as against its previous closing price of Rs. 282.6. The stock has delivered negative returns of around 11 percent in the last one year, but has gained by over 24 percent in the last one month.
What’s the News
On 9th January, Hindustan Copper Limited (HCL) appointed South West Mining Limited (SWML) as the Mine Developer-cum-Operator (MDO) for multiple projects – the reopening and expansion of the Rakha Copper Mine, the development of a new underground mine at Chapri, and the commissioning of a new concentrator plant for a period of 20 years, extendable by another 10 years.
Notably, mining operations at the Rakha Mine have remained suspended since 2001 due to unviable operations, making this revival a milestone initiative. The Mining Services Agreement between HCL and SWML was officially signed on 9th January 2025, in Ranchi.
Subsequently, on 19th September, HCL executed the Rakha Mining Lease Deed with the District Commissioner (DC), Jamshedpur, for an extended tenure of 20 years. This development marks a crucial step towards the reopening and expansion of the Rakha Copper Mine, a project of strategic importance for strengthening domestic copper production in the region. The lease extension represents a pivotal step in revitalising Rakha, one of HCL’s most valuable copper assets.
Building on this progress, Hindustan Copper signed a separate Memorandum of Understanding (MoU) with Oil India Limited on the same day to collaborate in the exploration and development of critical and strategic minerals, including copper and associated minerals in India and overseas.
This collaboration aligns with the government’s National Critical Minerals Mission and underscores the increasing synergies between energy and mining public sector undertakings (PSUs) to strengthen domestic resource security, HCL noted in the filings.
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 rise of around 19 percent YoY.
The company is currently implementing plans to increase its mining capacity from around 4 million tonnes per annum (MTPA) to 12.2 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.
Hindustan Copper Limited, a Miniratna Category-I Enterprise of the Government of India (GoI) under the administrative control of the Ministry of Mines, 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. 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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