By Abhishek Law

Copyright thehindubusinessline

Copper demand in India is projected to accelerate in the coming decade, driven by growth in renewable energy projects, push for electric vehicles and large-scale infrastructure expansion. This has prompted Hindustan Copper Ltd (HCL), the country’s only integrated copper miner, to look at aggressive expansion and investments – which include fundraising plans approved by the Board, while strengthening critical mineral security through overseas ventures.

HCL said India’s copper consumption is set to grow in line with economic expansion and the energy transition. The company expects to meet rising demand through mine expansions, new projects and strategic partnerships both domestically and abroad.

The state-run copper producer plans to increase its ore production capacity from the current 4 million tonnes per annum (MTPA) to 12.2 MTPA by 2030-31, as noted in its Annual Report FY25.

Incidentally, India has about 0.2 per cent of the world’s copper reserves and mine production is about 0.12 per cent of the world.

And, HCL holds about two fifth of the country’s ore reserves, the average grade being 0.95 per cent.

Domestic expansion plans

The expansion is anchored in ongoing projects at the Malanjkhand Copper Project in Madhya Pradesh where underground mining infrastructure, a concentrator facility and a paste-fill plant are under development.

The company is also upgrading operations at the Khetri Copper Complex in Rajasthan and the Indian Copper Complex in Jharkhand.

The Rakha mine in Jharkhand is expected to be revived, while Kendadih is also scheduled for expansion. These projects together will contribute to more than tripling output by the end of the decade, HCL said in its annual report.

“In Indian Copper Complex (ICC), Jharkhand, Surda mine operations resumed on 05-10-2024,” Chairman and Managing Director, Sanjiv Kumar Singh, told shareholders in the Annual Report.

“The company has initiated action to open the closed mines, develop new underground mine at Singhbhum Copper Belt of ICC, namely Kendadih and Rakha mines. Now, after obtaining the necessary statutory clearances, the lease deed will be executed, enabling the commencement of mining operations to produce 3.00 MTPA through Mine Developer and Operator (MDO),” he added.

The lease deed of Kendadih mine will be executed after obtaining necessary statutory clearances, the report mentioned.

Capex requirements

Capex requirements are being funded partly from proceeds of a qualified institutional placement raised earlier (of ₹500 crore) of which around ₹430 crore has already been deployed.

The board has also cleared plans to raise fresh resources through non-convertible debentures or bonds to meet additional funding needs.

International expansion and KABIL

HCL is pursuing overseas diversification through Khanij Bidesh India Ltd (KABIL), its joint venture with NALCO and MECL. KABIL’s mandate is to secure lithium, cobalt, copper and other critical minerals from international markets for India.

HCL’s cumulative equity contribution to KABIL stood at about ₹30 crore as of March 2025. The venture, however, remains in the investment phase, and HCL recorded a provision for its share of losses in FY25.

Management noted that while profitability has not yet been achieved, KABIL is a long-term strategic initiative to ensure mineral security.

Earlier this year, it entered into a MoU for exploration, resource mapping and technical know-how sharing with Chile’s CODELCO – another state run miner there. The move is aimed at securing copper and other critical mineral resources from overseas.

Singh said HCL is “actively exploring” avenues in the field of critical and strategic mineral resources.

“The company has participated in various initiatives in the form of MoUs and collaborations with industry leaders like Coal India Ltd, Indian Oil Corporation Ltd, GAIL (India) Ltd and RITES Ltd to secure a position in sustainable supply of copper and other critical minerals for India’s future requirements in energy transition, manufacturing sector and abroad,” he said.

Financial performance

For FY25, HCL reported a standalone profit of ₹468.53 crore, up from ₹295.41 crore in the previous year, marking a 59 per cent increase.

Revenue from operations rose to ₹2,070.96 crore, compared with ₹1,717.00 crore in FY24. On a consolidated basis, profit stood at ₹467.42 crore, up from ₹295.73 crore.

The company also reported stronger margins and higher returns:

Net profit margin rose to over 22 per cent (vs 17 per cent in FY24).

Return on Capital Employed (ROCE) improved to around 24 per cent, from 18 per cent in the previous year.

The debt-equity ratio declined further to 0.06, underscoring a near debt-free position.

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Published on September 20, 2025