HCL board approves awarding contract to Lohum for restarting Gujarat Copper Plant after 6-yr hiatus

New Delhi: State-owned Hindustan Copper Limited (HCL) on Friday said its board has approved awarding contract to Lohum Materials Pvt Ltd for restarting operations of Gujarat Copper Plant, a unit of HCL, under a 'Revenue Sharing Model.' PSU Watch reported for the first time in November 2025 that HCL is planning to restart its 50,000-tonne secondary copper smelter and refinery in Gujarat’s Bharuch district after a six-year-long hiatus.

The agreement will initially remain valid for 20 years and is likely to be extended by an additional five years.

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HCL Copper Plant

HCL acquired the plant and machinery, including lease hold land of Jhagadia Copper Ltd (JCL), from Asset Reconstruction Co (India) Ltd in June 2015 for Rs 210 crore and renamed it as Gujarat Copper Project. The plant commenced production in 2016. However, it has been dormant since 2019.

The plant was setup in technical collaboration with Sweden-based Outokumpu Technology AB (formerly Boliden Contech AB) and is capable of processing a wide array of copper bearing materials, including e-scrap, to produce LME-A grade copper cathode, according to HCL.

HCL okays proposal to sign pact with EIL

The board also approved a proposal to sign a pact with Engineers India Ltd (EIL) to collaborate on a range of technical and project services. The company may also explore the possibility of exploration of copper blocks in Madhya Pradesh, Chhattisgarh, Jharkhand, West Bengal, and Sikkim.

The decision, taken at a board meeting on Friday on signing of Memorandum of Understanding (MoU) between HCL and Engineers India Ltd, covers cooperation pre-project and exploration covers cooperation in pre-project and exploration services, engineering, detailed design, and specialised metallurgy, safety and statutory compliance studies, integrity assessments, and sustainability and advanced technical solutions, HCL said in a filing to the BSE.

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The MoU, which will be executed in due course, is aimed at leveraging EIL's engineering and consultancy capabilities to support HCL's plans to expand and modernise its copper mining and processing operations.

The collaboration is significant against the backdrop of India's push to bolster domestic metal production and secure critical mineral supply chains.

HCL, the country's only vertically integrated copper producer, has been pursuing capacity expansion and technology upgrades to meet rising demand from power, construction and the electric vehicle sectors.

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