PSU to generate Rs 2,400 crore revenue in next 20 years: Hindustan Copper CMD
Hindustan Copper shares rise 2.27% to Rs 235.15 on NSE after announcing a 20-year revenue target of Rs 2,400 crore from its contract with JSW Group for Jharkhand mining blocks.
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Hindustan Copper, the public sector enterprise (PSU), shares jumped as much as 2.27% to Rs 235.15 apiece on the NSE on Monday, March 24, as the copper-producing company said that it aims to generate roughly Rs 2,400 crore in revenue over the next 20 years from its recent contract with a JSW Group firm which has been appointed as a mine developer and operator for two blocks in Jharkhand.
Through a competitive bidding process for Rakha copper mining, comprising two blocks – Rakha and Chapri – in Jharkhand, for 20 years, JSW Group's South West Mining LTD (SWML) secured a contract on a revenue-sharing basis in January, extending another 10 years.
"The deal represents a significant turning point and essential component for the rebirth of Jharkhand activities. It is based on revenue sharing. In his first meeting following the charge, Hindustan Copper Chairman and Managing Director (CMD) Sanjiv Kumar Singh said we project income of around Rs 2,400 crore over the next 20 years.
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Among the two copper blocks, Chapri is a greenfield project; Rakha is an old one, closed almost twenty years ago. Both mining blocks are under one mining lease held by Hindustan Copper LTD. A statement from SWML indicates that the Rakha mine is expected to have an ore capacity of three million tonnes annually (MTPA) and is probably going to become partially operational in the second half of 2026–27.
The agreement states that the MDO will handle operational management, capital spending, mining development, including putting up and running the matching capacity concentrator facility.
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