opportunities in indian copper mining industry · 1 malanjkhand 400 new ug mine -largest base metal...
TRANSCRIPT
Opportunities in Indian Copper Mining
Industry
Hindustan Copper Limited
The Copper Miner to the Nation
Indian Copper ScenarioA Snapshot
India has limited copper ore reserve contributing about 2 % of world reserves.
Under Exploration:
- Only 20,000 sq.km. area explored out of a potential 60,000 sq.km
- Reserve to production and reserve to resource ratio very low.
Mining production is just 0.2% of world’s production , whereas refined copper production is about 4% of world’s production.
Global ranking : 4th in smelter production and 8th in refined consumption.
Indian Refining capacity higher than local demand – net exporter of refined copper.
Opportunity to increase ore production through expansion and green field exploration.
India’s Cu consumption is concentrated in electrical in contrast with the rest of the
world which is concentrated in building and constructionData: CRU
End use consumption of Cu in India End use consumption of Cu in the world
Copper Consumption
Telecom
2%
Electrical
34%
Transport
11%Building
Construction
8%
Consumer
Durables
8%
Engineering
6%
Defence
3%
Others
28%
X Plan
2002-07
XII Plan
2012-17XI Plan
2007-12
Actual
US $ 226.5bn
Original
US $ 406bn
Revised projections
US $ 514 bn
Original
US $ 857bn
Projected
US $ 1025bn
…there is close to US $ 1.02 trillion of committed
investments planned into infrastructure sectors by 2017
Data: CRU, Planning Commission
This should augur well for the base metals demand over the long term.
For refined Copper demand is expected to grow at a CAGR of 7.0% yearly
till 2030...
CAGR 2012-
2030: 7.0%
Data: CRU
India’s Cu refined consumption, 1981-2030, 000 tonnes
Source : CRU
HCL Profile
Established - 9th November 1967
Government of India share holding - 94.01 (%)
Turnover (FY’12) - US$ 310 Mn
Net worth (FY’12) - US$ 250 Mn
Four Operating Units – 4 mines(1 o/c +3 u/g; 2 smelters plants; 1 wire rod plant)
Manpower (1.1.2013) - 4750
Market Capitalization - US$ 2.2 Bn
Listed Company in Indian Stock Exchanges
Only vertically Integrated Copper Mining Company Holding All the Operating copper mining leases in India
7
Malanjkhand Copper Belt (MCB)
Geological Reserves
331 MT @ 1.05 % Cu
Mining Assets of HCL
Singhbhum Copper Belt (SCB)
Geological Reserves
Surda
Kendadih
Chapri-Sideswar
Rakha
Total
41 Mt @ 1.2 %Cu
156 Mt @ 1.05% Cu.
197 Mt @1.1% Cu.
Khetri Copper Belt (KCB)
Geological Reserves
Khetri
Kolihan
Banwas
Chandmari
Total
32 Mt @ 1.13% Cu.
19.5 Mt @ 1.33 5 Cu.
25 Mt @ 1.6% Cu.
18 Mt @ 1.0 Cu.
94.5 Mt @ 1.25 % Cu.
Resources & Reserves 623 Mt
Proved & Probable – 411 Mt
Mine Expansion ProjectsA snapshot
No Mine Investment
US$ mn
Scheme Capacity Mta
Current After Expansion
1 Malanjkhand 400 New UG mine -Largest
base metal UG mine
2.0 5.2
2 Khetri 35 Expansion – Increasing
Depth (300mtrs)
0.5 1.0
3 Kolihan 60 Expansion – Increasing
Depth (120 mtrs)
0.5 1.5
4 Surda 50 Expansion – Increasing
Depth (150 mtrs)
0.4 0.9
6 Rakha 65 Re-opening Nil 1.5
7 Kendadih 20 Re-opening Nil 0.21
5 Banwas 20 Development of New Mine Nil 0.6
8 Chapri
Sideshwar-
85 New Mine Nil 1.5
Total 735 3.4 12.41
Copper Production - Mines
31 27 28 31 3235
60
90
125
0
20
40
60
80
100
120
140
2008
2009
2010
2011
2012
2014
(f)
2015
(f)
2016
(f)
2017
(f)
‘000 tonnes MIC
Hindustan Copper Initiatives
Enhance Mine Production Capacity.
- HCL to enhance its mine capacity from 3.4 Mta to 12.4 Mta by 2017.
- Investment of US$ 735 million planned.
- Eight mine projects rolled out concurrently.
Accelerated Exploration to replenish the depleting reserves of existing mines -Annual investment of US$ 2million planned
Thrust on Green field exploration.
- 20 fresh PL/ML application covering around 10,000 sq. Km
- Joint Venture for exploration/exploitation of copper and gold mineral planned with State Government
Technology to extract metals from huge tailing dams –prospects for Gold, Tin, Moly, Magnetite etc..
Outbound Investment: Acquisition of copper assets in other geographies.
Acquisition of deposit in Joint venture.
EPC contract for Mine Development and Beneficiation
Projects .
Contract Mining for underground mining.
Mine equipment - High capacity low profile dumpers,
loaders and locos .
Technology for leaching of sulphide copper ore.
Opportunities
THANK YOU
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