Mumbai: The Union government has approved Hindustan Copper’s capacity expansion proposal worth Rs 1856 crore, a statement said on Friday.
India’s third largest copper producer plans to raise the capacity of its copper ore mine in the central Indian state of Madhya Pradesh to 5 million tonnes from present 2 million tonnes, it said.
The mine will be developed underground as against the current extraction through the open cast method.
The funds required for the project would be raised by the company and the government would not provide any budgetary support, it said.
The mine located at Malanjkhand has rich extractable copper reserves of 141 million tonne, which is more than 70% of the known copper reserves in the country, it said.
The project is expected to be completed over a period of five years, it said.
Shares of Hindustan Copper rallied 6.6% to close at Rs 226.70 on Friday in a weak Mumbai market.