Hindustan Copper's Surda mine to restart next year.

Hindustan Copper Ltd. has overcome a major hurdle in recommencing its Rs. 210-crore Surda mine expansion project work, which was suspended for months because of a dispute between the lead contractor and the sub-contractor.

According to sources, the project work is expected to begin from January. The principal project contractor Sriram EPC (SEPC) and sub-contractor Indian Resources Copper Mining (P) Ltd. (IRCMPL), have ended their stand off through a settlement.

Hindustan Copper has decided it will allow an extension of time until 2018 for completion. The settlement involves a payment of Rs. 1.60 crore by SEPC to IRCMPL. The expansion project at the operating underground mine in Jharkhand had run into several problems, including the standoff between the project contractor and sub-contractor.

The expansion will allow an additional life of the mine up to five years and enhance Surda mine’s yearly production capacity from 0.4 million tonne per annum to 0.9 million tonne.

The Australian Stock Exchange-listed Indian Resources Ltd., the principal of IRCMPL, operates Surda mine. The expansion project development will run concurrent to the existing mine operations.

The Jharkhand Government had stopped the Surda mine operation and its expansion project work over the mining lease renewal issue, during a nine-month period since September 2014 until mid-June this year.

Hindustan Coper had last year suffered from a 20 per cent fall in copper prices as well 21 per cent fall in copper grade from its open cast mine at Malanjkhand in Madhya Pradesh, which contributes around 65 per cent of the company’s ore production.

HBL