Hindustan Copper Limited (HCL), the country’s sole vertically integrated copper producer under the Ministry of Mines, is set to restart its Kendadih and Rakha mines in Jharkhand’s East Singhbhum district as part of its broader plan to scale up domestic copper production and reduce India’s import dependency on this strategic base metal.
Why Kendadih And Rakha Mines Matter
The Kendadih and Rakha mines are located in the mineral-rich Singhbhum Copper Belt, which has historically been the backbone of India’s copper mining and processing industry. Both mines were shut due to operational inefficiencies, declining ore grades, and economic constraints, but technological advancements in underground mining have paved the way for viable reopening.
Key Project Details
| Mine | Location | Status | Proposed Capacity (TPA) |
|---|---|---|---|
| Kendadih | Ghatsila, Jharkhand | Closed since 2000 | ~200,000 |
| Rakha | Ghatsila, Jharkhand | Closed since early 2000s | ~400,000 |
Strategic Push For Self-Reliance In Copper
India consumes over 1 million tonnes of refined copper annually. With the surge in infrastructure projects, electric vehicles, solar panels, and high-tech manufacturing, demand is projected to grow exponentially. However, domestic production is insufficient, leading to significant imports, exposing the economy to global market volatility.
National Copper Balance Snapshot
| Particulars | Approximate Volume (FY24) |
|---|---|
| Total consumption | 1.1 million tonnes |
| Domestic production (refined) | ~600,000 tonnes |
| Imports | ~500,000 tonnes |
Figures are approximate industry estimates.
HCL’s Expansion Blueprint
The reopening of Kendadih and Rakha mines aligns with Hindustan Copper’s vision to triple mining capacity by 2028. The company aims to increase ore production from current 4 million tonnes per annum (MTPA) to over 12 MTPA through brownfield expansions, new mining leases, and technological upgrades.
Current Expansion Projects Overview
| Project | State | Current Capacity | Target Capacity | Status |
|---|---|---|---|---|
| Malanjkhand Underground Mine | Madhya Pradesh | 2 MTPA | 5 MTPA | Expansion underway |
| Kendadih Mine | Jharkhand | Nil | 200,000 TPA | Revival planned |
| Rakha Mine | Jharkhand | Nil | 400,000 TPA | Revival planned |
| Surda Mine | Jharkhand | Operational | Expansion under study | Operational |
| Khetri Mine | Rajasthan | Operational | Expansion planned | Operational |
Technological Upgrades For Sustainable Mining
To ensure economic viability and environmental compliance, HCL will adopt:
- Mechanised underground mining techniques
- Automated ventilation and monitoring systems
- Backfilling for minimal surface impact
- Enhanced safety protocols and digitalisation
These upgrades are expected to improve ore recovery, reduce waste generation, and ensure worker safety, aligning with India’s sustainability commitments.
Economic Benefits For Jharkhand
The reopening of Kendadih and Rakha mines will revive economic activity in Ghatsila and surrounding tribal regions, creating employment and entrepreneurial opportunities.
Potential Regional Economic Impact
| Parameter | Estimated Impact |
|---|---|
| Direct jobs | ~3,000 |
| Indirect jobs | ~10,000 |
| Annual economic contribution | ₹1,500 – ₹2,000 crore |
| Skill development | Mining operations, safety, mechanised maintenance |
Local communities will benefit from infrastructure upgrades, health and education CSR initiatives, and vendor development opportunities.
Policy Support For Mining Revival
The Ministry of Mines is actively driving reforms to accelerate mineral development, including:
- Single-window clearances
- E-auction of exploration blocks
- Incentives for critical mineral exploration
- Ease of doing business for PSUs and private miners
These measures are aimed at reducing project gestation time and attracting fresh investments into India’s mining sector.
Copper As A Critical Mineral For India
Globally, copper is being recognised as a critical mineral due to its role in:
- Renewable energy (solar, wind installations)
- Electric vehicles (batteries, motors, wiring)
- Telecommunications and digital infrastructure
India is framing a National Critical Mineral Strategy to ensure strategic mineral security, and copper will play a key role in this policy shift.
Market Perspective And Investor Sentiment
Hindustan Copper shares have gained momentum over the past year amid rising global copper prices, driven by supply risks in Chile and Peru, and robust demand from China’s green transition.
HCL Stock Trend (Last 1 Year)
| Month | Share Price (₹) |
|---|---|
| July 2024 | 120 |
| Oct 2024 | 132 |
| Jan 2025 | 137 |
| April 2025 | 148 |
| July 2025 | 155 |
Indicative data from market tracking platforms.
Challenges Ahead For HCL’s Revival Plan
While the revival plan is strategically sound, operational challenges remain:
- High capital expenditure: Mechanised underground mining involves significant upfront investments.
- Regulatory clearances: Multi-layered environmental, forest, and mining approvals can delay timelines.
- Skilled manpower shortage: Modern mining demands trained underground miners and engineers.
- Copper price volatility: Global market fluctuations impact financial viability assessments.
However, management remains confident of overcoming these hurdles with proactive stakeholder engagement and technological integration.
Leadership Perspective
An HCL official highlighted:
“Reviving Kendadih and Rakha mines is essential for meeting our expansion goals. These mines hold untapped resources and with the right technology, they will significantly contribute to India’s copper security while benefiting local communities.”
Global Context: Copper As The New Oil
Major economies like the US, EU, and China are racing to secure copper resources to fuel their energy transitions, with analysts dubbing copper the “new oil” of decarbonisation. India’s domestic production push is vital to compete in this evolving geopolitical mineral landscape.
Conclusion
The reopening of Kendadih and Rakha mines marks a significant milestone in Hindustan Copper’s growth strategy and India’s mineral security roadmap. As demand surges amid electrification and green energy expansion, domestic mining revival will ensure resilience, economic development, and reduced import dependence in the coming decades.
Disclaimer
This article is for informational purposes only. It does not constitute investment advice, mining consultancy, or financial recommendations. Readers are advised to consult certified mining engineers, environmental experts, or financial advisors before taking any commercial or investment decisions related to Hindustan Copper Limited or the broader copper sector.
