Hindustan Copper Ltd (HCL) has taken a major step towards expanding its existing copper operations with the appointment of M/s South West Mining Ltd (SWML) as the Mine Developer cum Operator (MDO) for reopening and expansion of the Rakha copper mine, development of a new underground mine at Chapri and commissioning of a new concentrator plant. The contract is for a period of 20 years, extendable by another 10 years.
SWML was incorporated in 1996 as Jindal Fertilisers Ltd and was renamed SWML in 2001. The company is controlled by Sajjan Jindal, the Chairman and MD of the US$24 billion JSW Group that includes JSW Steel, JSW Energy and JSW Cement. SWML is primarily engaged in surface mining activities for lignite, iron ore, limestone and dolomite extraction on behalf of JSW enterprises in the states of Karnataka, Rajasthan and Andhra Pradesh. For example, JSW Energy’s Barmer power plant sources lignite from the Barmer Lignite Mining Company Ltd (BLMCL) where SWML is the sole MDO.
The mining operation at Rakha in East Singhbhum, Jharkhand, has seen production suspended since 2001 on account of unviability but this situation has changed with high copper prices along with newer mining and more mechanised mining techniques. The Mining Services Agreement was signed on January 9, 2025 after the initial Letter of Award (LoA) was issued to SWML on November 25, 2024. The total capital expenditure (CAPEX) for this project is estimated to be approximately INR 2,700 crore which is over US$313 million. The direct and indirect employment will be around 10,000.
Rakha and Chapri form part of the Indian Copper Complex (ICC) at Ghatsila, Jharkhand which is in the Singhbhum Copper Belt that is comprised of Proterozoic volcano-sedimentary rock that houses the Singhbhum shear zone where copper mineralisation is localised. Prominent deposits of the belt are Chapri, Rakha, Surda, Kendadih, Pathargora and Dhobani. Other deposits are Turamdih, Ramchandrapahar, Nandup, Bayanbil and Dhadkidih.
Indian Copper Corporation Ltd was established by a British company in 1930 at Ghatsila consisting of a cluster of underground copper mines, concentrator plants and a smelter. In 1972 the Government of India nationalised the company under provisions of the Indian Copper Corporation (Acquisition of Undertaking Act) and merged it with HCL.
Surda is the current operating mine with reserves of 26 Mt at 1.2% copper. The Rakha mine has 47.19 Mt at 0.97% copper; Kendadih 12.85 Mt at 1.73% copper and the Chapri block 63.50 Mt at 1.14% copper.