Hindustan Copper to Invest ₹2,000 Crore to Triple Mining Capacity in 5–6 Years

Hindustan Copper Limited (HCL), the country’s only vertically integrated copper producer under the Ministry of Mines, has announced an ambitious investment of ₹2,000 crore over the next five to six years to triple its mining capacity. This strategic move is aimed at boosting India’s self-reliance in copper production and reducing dependence on imports as the demand for copper continues to surge amid rapid industrialization and renewable energy transitions.

Massive Expansion to Strengthen Domestic Copper Supply

Currently, Hindustan Copper operates several mines across India, including those in Jharkhand (Malanjkhand), Rajasthan (Khetri), and Madhya Pradesh. With a current mining capacity of approximately 4 million tonnes per annum (MTPA) of ore, the company aims to expand this to around 12 MTPA over the next few years.

This expansion will involve:

• Revival and deepening of existing mines

• Modernization of mining equipment and technologies

• Environmental and safety upgrades

• Infrastructure enhancement around mining areas

Investment Plan and Funding Structure

The ₹2,000 crore investment will be funded through a mix of internal accruals, market borrowings, and government support. According to HCL officials, the capital expenditure will be strategically phased out to align with project milestones, ensuring efficient capital deployment and timely project execution.

Driving Factors Behind the Expansion

1. Rising Copper Demand

India’s copper demand is being driven by:

• Electric vehicle (EV) manufacturing

• Renewable energy installations (especially solar and wind)

• Power transmission infrastructure

• Electronics and construction sectors

As copper plays a key role in electricity conduction and green technologies, demand is expected to double by 2030, prompting the need for robust domestic production.

2. Import Dependency Concerns

India currently imports over 90% of its refined copper due to limited mining and smelting capacity. Expanding domestic mining will reduce exposure to global price volatility and supply chain disruptions.

3. Strategic National Minerals Policy

The Government of India’s focus on critical and strategic minerals, including copper, through initiatives like Atmanirbhar Bharat and National Mineral Policy 2019, has given a significant push to PSUs like HCL to scale up operations and support economic growth.

Economic and Environmental Considerations

While HCL’s expansion is expected to create thousands of direct and indirect jobs, the company has also emphasized its commitment to sustainable mining practices. New mining projects will incorporate:

• Zero-discharge water management systems

• Scientific overburden disposal

• Afforestation and biodiversity conservation

• Community development programs in mining regions