Hindustan Copper, a government-owned corporation, is set to earn an estimated Rs 2,400 crore over the next 20 years through its agreement with a JSW Group firm. The firm, South West Mining Ltd (SWML), has been appointed as the developer and operator for two copper mining blocks in Jharkhand.
The deal, which was secured by SWML in January through a competitive bidding process, is based on a revenue-sharing model. It covers the Rakha and Chapri copper mining blocks and runs for 20 years, with an option for a 10-year extension.
Hindustan Copper’s Chairman and Managing Director, Sanjiv Kumar Singh, emphasized the importance of the contract in revitalizing operations in Jharkhand. “This deal is pivotal for the revival of our operations in the region, and we project revenues of about Rs 2,400 crore over the next two decades,” Singh said following his recent appointment.
Rakha, one of the two blocks, is an older mine that was closed nearly 20 years ago, while Chapri is a newly developed greenfield project. Both blocks are part of a single mining lease owned by Hindustan Copper. Once fully operational, Rakha is expected to process up to three million tonnes of ore annually, with partial operations expected to begin in late 2026-27.
Under the terms of the agreement, SWML will manage mine development, capital expenditure, and day-to-day operations, including the installation and operation of a concentrator plant. This arrangement follows an asset-light model that benefits both parties, with Hindustan Copper providing technical support and receiving a share of the revenue.
The project is expected to play a significant role in meeting the rising demand for copper in industries like electric vehicles, renewable energy, construction, electronics, and healthcare. Singh also highlighted that the initiative would help reduce India’s dependence on copper imports, supporting the country’s industrial growth.
Hindustan Copper Limited (HCL) is a prominent public sector enterprise under the Ministry of Mines, Government of India, and is the nation’s only vertically integrated copper producer. Established in 1967, HCL manages activities across the copper value chain, including mining, beneficiation, smelting, refining, and the production of various copper products.
The company operates mines and plants in states like Rajasthan, Madhya Pradesh, Jharkhand, and Maharashtra. HCL plays a significant role in meeting India’s growing demand for copper, an essential metal for industries like electrical, construction, and transportation. With a strong emphasis on sustainable mining practices, resource efficiency, and exploration to expand reserves, HCL is a key player in India’s effort to achieve self-reliance in copper production and support the country’s infrastructure and industrial growth.
