Competition heats up as Hindalco and JSW Steel vie for copper mines in Jharkhand

Sources revealed that Hindalco Industries and JSW Steel will competecompete for state-owned Hindustan Copper Ltd’s two copper mines in Jharkhand.

Aditya Birla Group’s Hindalco Industries and Sajjan Jindal-led JSW Steel are competing for two copper mines in Jharkhand that are set to be auctioned this month.

The combined production capacity of these two mines is estimated to be three million tonnes per annum (MTPA), according to sources.

The two mines, currently owned by state-run Hindustan Copper Ltd (HCL), include one virgin block and another that has been closed for the past 20 years.

The auction, expected to take place in October, could reshape India’s copper mining industry by boosting domestic production and reducing the country’s reliance on imports.

Hindustan Copper’s Expansion Plans

Hindustan Copper, the only integrated copper producer in India, has been actively expanding its operations.

In recent developments, the company had invited applications for a mine developer-cum-operator (MDO) for reopening and expanding the Rakha Copper Mine and for the development and operation of an underground mine at Chapri.

HCL reported that the Rakha Mining Lease expired in 2021, and the process for extension is ongoing with the Jharkhand government. Additionally, the forest clearance for the remaining area within the mining lease has been accepted by the Project Screening Committee.

Hindustan Copper is currently implementing expansion projects aimed at increasing its production capacity to 12.2 MTPA. In FY24, HCL’s ore production rose to 3.78 million tonnes, marking a 13% increase from FY23.

One of the key projects is the expansion of the underground mine at the Malanjkhand Copper Project (MCP), which is expected to double its ore production from 2.5 MTPA to 5 MTPA.

With Hindalco and JSW Steel entering the race for these Jharkhand copper mines, the competition could drive further growth and development in India’s copper industry.