Co has received five to six bids from Indian contractors for operating Surda mine
State-owned Hindustan Copper has just restarted operations at its Surda copper mine in Jharkhand earlier abandoned by an Australia-based mine operator India Resources (IRL) in June.
Country's sole copper miner has asked Shriram EPC to temporarily operate the mine at Jharkhand till a new Mine Developer and Operator (MDO) is selected via an ongoing tendering process.
"The contractor has started operations yesterday. We have suffered significant losses because of the Aussie contractor backing out. Quantum of losses are being calculated and claims would be raised against them," Hindustan Copper chairman cum managing director K D Diwan said.
"About five to six contractors, all Indian, have responded to the tender and the price bids would be opened in September. Considering six months required for arranging equipment and resources, we expect the MDO to start mine operations from December," director mining S K Bhattacharya said.
Hindustan Copper in June received a notice from India Resources informing it of terminating the contract for operation and maintenance of Surda.
The PSU had described such a step as "unilateral, wrongful and breach of the present contract" for which Hindustan Copper was entitled to claim damages.
IRL has outstanding liabilities in the market of more than Rs 40 crore payable to its bankers, suppliers and wages to its employees including statutory payments, HCL had then said.
"We are wary of dealing with foreign contractor considering our bitter experience," Diwan said.
Shriram EPC own the contract to develop the expansion project of Surda in 2011.
Hindustan Copper is investing close to Rs 5,000 crore in the next three-to-four years to scale up its mining and production of metal concentrate.
It has an installed capacity of copper production of 68,500 tonne a year which would go up to 1.68 lakh tonne in 3-4 years mainly by executing a one-lakh-tonne-a-year project to manufacture copper cathode through cost-effective hydro-metallurgy technology at an estimated investment of Rs 3,025 crore.
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Hindustan Copper in June received a notice from India Resources informing it of terminating the contract for operation and maintenance of Surda.
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