Singareni Collieries wins license for gold, copper mines exploration in Karnataka

New Delhi/Hyderabad: State-owned coal mining firm, Singareni Collieries Company Limited (SCCL) on Tuesday announced securing an exploration license for gold and copper blocks in Devadurga, Karnataka, through the auction conducted by the Union Ministry of Mines.

SCCL Chairman & Managing Director N Balram said that Singareni emerged as the L-1 bidder by quoting 37.75 percent royalty in the online auction, an official release said.

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He described it as a historic beginning for Singareni in critical mineral exploration and the first success in line with the Telangana government’s vision to expand SCCL into new sectors.

He further said exploration activities in these mines would be completed within the next five years.

Singareni’s Exploration Division will soon commence research in the Devadurga region of Karnataka, where gold and copper deposits are located, the release said.

After completing various stages of exploration, SCCL must submit the final results to the central government in the form of a report. The Centre will then put these mines up for auction for commercial mining. The company that secures the mining rights, be it SCCL or another firm, will have to pay royalty to the Karnataka government, of which 37.75 per cent will go to SCCL throughout the life of the mine, it said.

The exploration work is expected to cost about Rs 90 crore, of which Rs 20 crore will be provided as subsidy by the union government.

Telangana Chief Minister A Revanth Reddy and Deputy Chief Minister and Energy Minister Bhatti Vikramarka Mallu congratulated SCCL on bagging the exploration license for gold and copper.

They expressed confidence that with its 136 years of rich mining experience in coal and proven expertise in exploration, Singareni will emerge as a leading company in the country in critical mineral exploration as well.

The Singareni Collieries Company Limited (SCCL) is a government coal mining company jointly owned by the Telangana government and the Union Government on a 51:49 equity basis.

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