Hindustan Copper Limited The Copper Miner to the Nation

Opportunities in Indian Copper Mining Industry

Indian Copper Scenario A Snapshot  India has limited copper ore reserve contributing about 2 % of world reserves. 

Under Exploration: - Only 20,000 sq.km. area explored out of a potential 60,000 sq.km - Reserve to production and reserve to resource ratio very low.

 Mining production is just 0.2% of world’s production , whereas refined copper production is about 4% of world’s production.  Global ranking : 4th in smelter production and 8th in refined consumption.  Indian Refining capacity higher than local demand – net exporter of refined copper.  Opportunity to increase ore production through expansion and green field exploration.

Copper Consumption End use consumption of Cu in India

End use consumption of Cu in the world

Telecom 2% Others 28%

Electrical 34%

Defence 3%

Engineering 6% Consumer Durables 8%

Building Construction 8%

Transport 11%

India’s Cu consumption is concentrated in electrical in contrast with the rest of the world which is concentrated in building and construction Data: CRU

…there is close to US $ 1.02 trillion of committed investments planned into infrastructure sectors by 2017

X Plan 2002-07

XI Plan 2007-12

XII Plan 2012-17

Projected US $ 1025bn Revised projections US $ 514 bn Original US $ 857bn

Actual US $ 226.5bn

Original US $ 406bn

Data: CRU, Planning Commission

This should augur well for the base metals demand over the long term. For refined Copper demand is expected to grow at a CAGR of 7.0% yearly till 2030... India’s Cu refined consumption, 1981-2030, 000 tonnes

CAGR 20122030: 7.0%

Source : CRU

Data: CRU

HCL Profile 

Established

- 9th November 1967



Government of India share holding - 94.01 (%)



Turnover (FY’12)

- US$ 310 Mn



Net worth (FY’12)

- US$ 250 Mn



Four Operating Units – 4 mines(1 o/c +3 u/g; 2 smelters plants; 1 wire rod plant)



Manpower (1.1.2013)



Market Capitalization



Listed Company in Indian Stock Exchanges

- 4750 -

US$ 2.2 Bn

Only vertically Integrated Copper Mining Company Holding All the Operating copper mining leases in India

Mining Assets of HCL Khetri Copper Belt (KCB)

Khetri Kolihan Banwas Chandmari Total

Geological Reserves

32 Mt @ 1.13% Cu. 19.5 Mt @ 1.33 5 Cu. 25 Mt @ 1.6% Cu. 18 Mt @ 1.0 Cu. 94.5 Mt @ 1.25 % Cu.

Resources & Reserves 623 Mt Proved & Probable – 411 Mt

Singhbhum Copper Belt (SCB) Surda Kendadih Chapri-Sideswar Rakha Total

Geological Reserves 41 Mt @ 1.2 %Cu 156 Mt @ 1.05% Cu.

197 Mt @1.1% Cu.

Malanjkhand Copper Belt (MCB) Geological Reserves

331 MT @ 1.05 % Cu

7

Mine Expansion Projects A snapshot

No

Mine

Investment US$ mn

Scheme

Capacity Mta Current

After Expansion

1

Malanjkhand

400

New UG mine -Largest base metal UG mine

2.0

5.2

2

Khetri

35

Expansion – Increasing Depth (300mtrs)

0.5

1.0

3

Kolihan

60

Expansion – Increasing Depth (120 mtrs)

0.5

1.5

4

Surda

50

Expansion – Increasing Depth (150 mtrs)

0.4

0.9

6

Rakha

65

Re-opening

Nil

1.5

7

Kendadih

20

Re-opening

Nil

0.21

5

Banwas

20

Development of New Mine

Nil

0.6

8

Chapri Sideshwar-

85

New Mine

Nil

1.5

Total

735

3.4

12.41

Copper Production - Mines ‘000 tonnes MIC 125

140 120 90

100 80

60

60 40

31

27

28

31

32

35

20 20 17 (f)

20 16 (f)

20 15 (f)

20 14 (f)

20 12

20 11

20 10

20 09

20 08

0

Hindustan Copper Initiatives 

Enhance Mine Production Capacity.

-

HCL to enhance its mine capacity from 3.4 Mta to 12.4 Mta by 2017. - Investment of US$ 735 million planned. - Eight mine projects rolled out concurrently.



Accelerated Exploration to replenish the depleting reserves of existing mines -



Thrust on Green field exploration.

Annual investment of US$ 2million planned

- 20 fresh PL/ML application covering around 10,000 sq. Km - Joint Venture for exploration/exploitation of copper and gold mineral planned with State Government



Technology to extract metals from huge tailing dams –prospects for Gold, Tin, Moly, Magnetite etc..



Outbound Investment: Acquisition of copper assets in other geographies.

Opportunities  Acquisition of deposit in Joint venture.  EPC contract for Mine Development and Beneficiation Projects .

 Contract Mining for underground mining.  Mine equipment - High capacity low profile dumpers, loaders and locos .  Technology for leaching of sulphide copper ore.

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