HCL to spend Rs 5,500 crore on expansion plans
Hindustan Copper (HCL) will spend Rs 5,500 crore over 6 years to expand its production capacity by six times to up to 20 million tonnes per annum (mtpa). HCL has very ambitious expansion plans, the company’s CMD Santosh Sharma said.
“We have been working till date with a target of expanding to 12.4 million tonnes of copper ore production per annum. Now we have set our revised target at 20 million tonnes (mt),” he said. Sharma said the company is aiming to enhance its capacity six times from present 3.6mtpa to 20mt by 2023-24.
Right now the company is catering to around 5% of domestic copper demand and aspires to take it to the level of 30% and it has reviewed its expansion plan, Sharma said.
“We have come to conclusion that we can grow up to 20 million tonne by 2023-2024 and for that we have already chalked out action plan and we will be working on that action plan. This will be supported by our exploration activities also,” he added. It will fund the capital expenditure through internal accruals, equity (QIP), and debt in a phased manner.
Besides, the company said that it will also spend Rs 175 crore for exploration activities spread over three years.
Expansion projects of HCL are located in the states of Madhya Pradesh, Rajasthan and Jharkhand.
Hindustan Copper, a vertically integrated copper producer, is primarily engaged in business of mining and processing of copper ore to produce refined copper metal.