Hindustan Copper Limited (HCL) is set to restart operations at its Kendadih Copper Mines after receiving environment clearance from the Ministry of Environment and Climate Change on 6th September. The move ends a two-year production halt and is expected to revive economic activity in the Musabani region.
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Global Tender Completed, LOI to Follow
Company sources confirmed that Khetan Mining Pvt. Ltd. secured the contract by quoting the lowest bid in a global tender, defeating MMPL and Triple-AC. HCL management is now preparing to issue the Letter of Intent (LoI). As per the contract, Khetan Mining will handle mine operations and development for 10 years.
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Production Plan and Technical Challenges
In the first phase, the mine will produce 2.2 lakh tonnes of Copper ore annually. Production will gradually increase to 4.5 lakh tonnes a year after development up to 10 levels. The Kendadih lease area spans 1,139 hectares with ore grade at 1.5%, considered high quality. However, narrow Copper seams present technical challenges and may require advanced mining techniques to raise output efficiently.
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The reopening of Kendadih Mines is expected to boost local employment and revive Musabani’s economy, which has suffered since HCL shut operations in 2003. Regular workers had been given VRS then, and since 2017 MMPL was engaged for dewatering and development works. With operations set to resume, industrial activity in the region is likely to pick up, benefitting ancillary sectors as well.
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