Hind Copper plans mega capex
HCL is planning to pump in between Rs 1500 and Rs 2000 crore over the next 5-6 years in mine development.india Updated: Sep 27, 2006 15:02 IST
Hindustan Copper Limited (HCL) is planning to pump in between Rs 1500 and Rs 2000 crore over the next 5 to 6 years in mine development to increase production.
"We have decided on major thrust in mine development where we have competitive edge. Investment in new mine and existing development could be between Rs 1,500 and Rs 2,000 crore," HCL Chairman and Managing Director S C Gupta said on Tuesday.
The investment roadmap, however, has not yet been finalised.
"The roadmap to mobilise funds is yet to be firmed up and would depend on the proposed restructuring plan pending before the Union government," Gupta said.
Feasibility study is been carried out by the UK-based SRK Consultants. The mandate for the consultant is to advise HCL to optimise existing mines. It will also advise on underground mining in Malanjkhand in Madhya Pradesh and new deposits at Banwas in Rajasthan.
The company since the last two years has been investing Rs 60-70 crore in mine development from internal accruals.
Beside, mine development the company will also take up cost reduction, financial restructuring, disposal of non-performing assets, outsourcing and formulating energy policy.
HCL may hit the capital market if the government provides a favourable restructuring scheme.
In order to realise better value for its copper products it has initiated a process to list copper cathodes on the London Metal Exchange. It was expected to be completed by 2008.
Meanwhile, during the year HCL was aiming at a net profit of Rs 200 crore year due to increased productivity of 35,000 tonne against 22,000 tonne mined during the last fiscal.
During April-August in the current fiscal the company has achieved Rs 83 crore profit. In 2005-06, the company raked in a net of Rs 100.22 crore from a turnover of Rs 1,053.76 crore. The accumulated loss of the company is Rs 723 crore.