Mining major Hindustan Copper plans to increase its capacity by roughly threefold to 12.2 MT by FY31 from 3.47 MT in FY25. India's leading miner has planned a capital expenditure of around Rs 2,000 crore over the next 5-6 years and will continue to add to the budget for exploration of copper ore reserves, the company said in an investor presentation, shared a day prior.
Hindustan Copper's shares are sharply higher by over 10 percent with combined volumes that are 12x the one-month average on September 12, helped by a slew of factors including the ambitious expansion plan and capex details.
The company reaffirmed its plans to acquire new copper deposits in India and abroad, including a collaboration with Chilean company CODELCO for capacity building and knowledge sharing. The company has MoU with PSUs such as RITES, IOC, Coal India and GAIL to expand its mining portfolio.
The company is expanding the mining capacity at several locations including Malanjkhand Copper Project (MCP), Khetri Copper Complex (KCC), Indian Copper Complex (ICC), Kendadih and Rakha mines.
Hindustan Copper, India’s sole miner of the mineral, is looking to boost its reserves and expand capacity at a time when global demand is rising. An increased budget of exploration had already led to 123 MT worth of additional reserves and resources in last two years, the miner said.
Government's developmental initiatives such Make in India, PLI Schemes, EV push, Smart City Project, Aatmanirbhar in Defence, ambitious renewable energy target and other such initiatives are expected to further increase growth of copper consuming industries in India, the company has said.
Another factor pushing up international copper prices is the suspension of operations at the Indonesia mine of Freeport-McMoRan, one of the major producers, following a mishap.
Copper prices are also upbeat on hopes of a rate cut by the US Federal Reserve interest rate cut next week, which may boost economic activity, supporting copper demand.
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