(I) Company Information

 

INTRODUCTION

Hindustan Copper Limited is the sole integrated producer of primary copper in India. The company was incorporated in Public Sector on 9th November 1967 to take over the plants and mines at Khetri, Kolihan in Rajasthan and Rakha Copper Project in Jharkhand from National Mineral Development Corporation Limited. 

In 1972 M/S Indian Copper Corporation Limited, Private Sector Company, located at Ghatsila, Jharkhand with Smelter and Refinery was Nationalized and made part of HCL. Hindustan Copper Limited developed Malanjkhand Copper Project in Madhya Pradesh, the largest hard rock open pit mine in the country which was dedicated to the nation on 12th November 1982. Further in 1990 a Continuous Cast Wire Rod plant of South Wire Technology was commissioned at Taloja in Maharashtra.

In the process of its multi-dimensional growth, HCL has been able to develop expertise in exploration, mining, beneficiation, smelting and refining of copper and recovery of by products such as Gold, Silver, Nickel Sulphate, Copper Sulphate, Selenium, Tellurium etc.  

The introduction of reform process in 1991 was a land mark of India’s economic growth. In 1992, Government  of India dismantled the system of canalising as well as the system of administered pricing. Subsequently customs duty on import of concentrate and refined copper were also reduced considerably. As a result of this the domestic price of copper is now linked with the international price. This change has thrown fresh challenges to HCL. HCL is striving its best to cope with these challenges and has carried out its capital restructuring in September 1998. HCL has also prepared a Turn Around strategy consisting of down sizing manpower, capacity enhancement, cost reduction etc. It has shutdown its high cost mines in the Singhbhum belt and separated the employees through a very just and fair Voluntary Retirement Scheme. Government of India has planned to disinvest HCL’s mines and flash smelter and refinery (31,000 TPA capacity) at Khetri Copper Complex and South Wire CC Rod Plant (60,000 TPA) at Taloja.

HCL shares are listed at Mumbai, Delhi, Calcutta, Madras, Ahmedabad exchanges. 

HCL was the first Indian Copper producer to get ISO-9002 certificate for its Continuous Cast Wire Rod Plant. ISO-9002 certificate has also been awarded for its Cathode produced at its refineries at Indian Copper Complex and Khetri Copper Complex

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UNITS

KHETRI COPPER COMPLEX  (KCC)

LOCATION IN THE STATE OF RAJASTHAN, 180 kms FROM DELHI
CAPACITY 31,000 TPA COPPER CATHODE
BY PRODUCTS SULPHURIC ACID
MINES

KHETRI AND KOLIHAN 

(PRODUCING 9,500 MT METAL IN CONCENTRATE / ANNUM)

RESERVE  

KHETRI 34.56 Million Tonnes @ 1.13% Cu

KOLIHAN 22.45 Million Tonnes @ 1.33% Cu

BANWAS 24.97 Million Tonnes @ 1.69% Cu

      

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INDIAN COPPER COMPLEX (ICC)

LOCATION IN THE STATE OF JHARKHAND
CAPACITY 16,500 TPA COPPER CATHODE  
BY PRODUCTS  SULPHURIC ACID, GOLD, SILVER, PALLADIUM, SELENIUM, TELLURIUM, NICKEL SULPHATE
MINES  SURDA
RESERVE SURDA 19.30 Million Tonnes @1.17% Cu

                     

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MALANJKHAND COPPER PROJECT (MCP)

LOCATION MADHYA PRADESH 300 KM FROM RAIPUR  
CAPACITY OPEN CAST MINE WITH A CAPACITY OF 2 Million Tonnes WITH MATCHING CONCENTRATOR
MINES MALANJKHAND OPEN PIT MINE  
RESERVE 208.030 Million Tonnes @1.3% Cu
FEATURES OF THE OPEN PIT MINE  

LENGTH

2000 METER
WIDTH 600 METER
PLANNED DEPTH  200 METER BELOW AVERAGE  GROUND LEVEL


  
                 
PRODUCES - 20,000 MT METAL IN CONCENTRATE BULK OF WHICH IS SENT TO ICC, BALANCE SHIFTED TO KCC

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TALOJA COPPER PROJECT (TCP)  

LOCATION  IN THE STATE OF MAHARASHTRA, DIST- RAIGAD, 60 KM FROM  BOMBAY  
CAPACITY 60,000 TPA CONTINUOUS CAST COPPER ROD (CCR) - HINDCOP RODS  

HINDCOP RODS are manufactured with the highest quality of copper  to meet the most exacting requirements of the wire drawing industry in electrical, mechanical and chemical properties.

Stringent control is maintained to ensure that HINDCOP RODS are totally free of impurities, as the whole manufacturing process takes place in one smooth, efficient, operation, closely monitored by a process control laboratory, fully equipped with the latest Physio-Chemical Instrumentation.

TECHNOLOGY   PLANT IS BASED ON THE LATEST ‘SOUTHWIRE TECHNOLOGY’  
PRODUCT RANGE 8 MM, 11 MM, 12.5 MM,  AND 16 MM CC ROD


THE TCP PLANT IS ACCREDITED WITH ISO 9002 CERTIFICATION FOR CC ROD PRODUCT.

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Social Commitment

Hindustan Copper Ltd., since its inception, has made significant contribution for the upliftment of living conditions of the people of the areas where it had established its production units and mines. These areas were in Rajasthan, Bihar, Madhya Pradesh and Maharashtra and were comparatively rural and backward. HCL, has undertaken the following social activities under its rural development programme :

Clean drinking water :

To provide clean drinking water to the people in surrounding areas of the units deep tubewells  were provided on selected basis. Idea was to provide maximum benefit to villagers. Especially in Rajasthan, were water is always scarci all time open water connections were provided to all the villages from Khetrinagar to Chaowra – a stretch of 50 Kilometers.
 

Adult Education Classes

To spread literacy amongst adivasis adult literacy classes were taken to the doorsteps of the villagers. These classes with special emphasis on rural and adivasi Women were conducted in different villages. Rural lady teachers were appointed who had to complete the basic course on 3 R’s, conduct tests and provide certificates.  

Rural Medical Camps :

Apart from providing medical facilities to the deserving local population at project Hospitals. HCL also organized medical camps in rural areas, where team of qualified doctors diagnosed and provided free medicines to the villagers.

Vocational Centres :

 HCL’s units located in different areas had training centres, who in turn organised training camps for women belonging to economically weaker sections of the society. Training in basket weaving, caning of chairs, stitching of hand gloves used in the plants are some of the occupations which became popular in rural areas.  Besides this, Eye Relief Camps, Family Planning Camps, Ayurvedic Camps for villagers, are permanent feature in the Units of HCL.  

Abatement of Pollution :

Hindustan Copper Limited is fully committed to the concept of operating in an Environment friendly atmosphere.
In addition to the environmental protection measures that were in-built with the original project, additional steps have been taken to conform to all the regulatory standards prescribed by Pollution Control authorities.

For this purpose, De-sulphurisation schemes have been successfully implemented both at KCC and ICC Smelters at an approx. cost of Rs. 113 crore using state of the art technologies to control Air Pollution due to Sulphur dioxide gas which emits out through Smelter off gases.
Similarly full fledged liquid Effluent treatment plants have been installed at all units of HCL to treat the water effluents and simultaneously to reuse the treated water in the process plants. Thus HCL has already achieved zero water Pollution.
To make the environments pollution free, all the Units of HCL organise mass plantation campaigns every year. Special emphasis is laid on plants survival. This is being looked after by the horticulture Departments of all the Units

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Milestones Achieved

 TECHNOLOGICAL INNOVATION 

Hindustan Copper Limited has to its credit some  major contributions towards technological improvements in mining, beneficiation, smelting, hydrometallurgy and by-product recovery. Some of the areas where Hindustan Copper Limited has introduced new technology are 

MINING   
TRACKLESS MINING
 

Trackless mining has helped in rapid development of mines enabling higher levels of production and productivity comparable to international standards. 

DROP RAISING 

Raising is one of the most difficult of mining operation, HCL has developed and perfected the concept of drop raising over 60m intervals. This has resulted in increased-safety and higher progress. A pattern of five 6” diameter holes has been standardized for the crater method of blasting the raises sequentially. 

LARGE DIAMETER BLAST HOLE STOPING 

HCL has developed single sub-level method of stoping using large diameter (162 mm) blast holes over level intervals of 50 to 60 meters. Need to have intermediate sub-level for drilling has been eliminated in this method. Excellent fragmentation has been achieved. Benefits of new stoping method compared with the conventional sub-level stoping methods are: 

  1. Reduction in quantum of developments, drilling cost and explosive cost;

  2. Overall reduction in the cost of mining;

  3. Reduction of manpower and

  4. Reduction in stopes preparation time. The new method of stopping has revolutionized mining technology.

 ROCK BOLTING

For mining flat dipping ore bodies, timber support was common in early days. With the need to mine over a large width. HCL developed very simple but effective methods of rock bolting using cement grouted steel rods. This has resulted in the improvement of ground conditions ensuring higher safety standards.

POST PILLAR STOPING

HCL has developed the post-pillar method of mining for adoption in flatly dipping wide ore bodies in ICC group of mines. This mining method has enabled the production rates to go up as compared to room and pillar stopes. Electrically operated LHD 's have been introduced at ICC for operating in these stopes. The output per man shift has increased and the stoping cost has come down substantially. Hydraulic filling of stopes with classified mill tailings has been established as a standard practice at the ICC resulting in regional improvement in ground conditions. 

SMELTING 

OXYGEN ENRICHMENT 

HCL has also taken the lead in introducing oxygen enrichment in the converters at KCC and ICC resulting in effective control of accumulation of secondary products in smelting. HCL has also introduced oxygen enrichment in process air in flash furnace to effectively increase the capacity of the existing smelters for meeting increased production commitments. 

HYDRO-METALLURGY 

Occurrences of large quantities of oxidized ore and lean grade sulphide ore at Malajkhand has impelled the company to extract copper values in the ore by dump leaching otherwise uneconomical by conventional methods. The dump is sprayed with dilute acidified solutions to dissolve copper minerals. The end products of this leaching operation is a pregnant liquor of copper sulphate. The leached liquor is then treated to recover copper metal. 

BY-PRODUCT RECOVERY 

HCL has established well equipped R&D facility at KCC and ICC. The R&D section is fully responsible for improvement in quality of the products, control of quality of raw materials, improvement of recoveries and for maximizing the recovery of by-products, HCL has developed its own Precious Metal Recovery plant which is now operating at ICC successfully. A Tellurium Recovery Plant has also been developed by R&D Wing. Extensively trails are going on for recovering cobalt, nickel and copper powder from converter slag. Attempts are also being made for reducing the losses from slag.

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FINANCIAL HIGHLIGHTS

TEN YEARS AT A GLANCE (Rs. in lakhs)  

FOR THE YEAR

2004-05 2003-04

2002-03

2001-02

1999-2001

(18months)

1998-99

(12months)

1997-98

(18months)

1996-97

1995-96

1994-95

1

2

3

4

5

6

7

8

9

10

Turnover

55911 51887

50568

60498

94558

47949

120348

98024

111802

93295

Profit/(Loss)

11173 289

(8999)

(12592)

(10626)

(11276)

(1725)

(7677 )

13099

12450

Depreciation and Amortisation

5575 5905

5771

5812

9019

5925

8848

5384

5515

5224

Net Profit/(Loss)

5598 (5616)

(14770)

(18404)

(19644)

17201

10573

13062

7584

7226

Value Added

35042 22901

14737

15309

33591

16724

28946

21937

41359

42216

Value of production

63124 53443

50153

58666

100166

51347

118022

100529

118627

90504

AT THE YEAR END  

Share Capital

94895 90895

79511

71011

54361

53661

52511

33820

33820

33020

Internal Resources

(29884) (35030)

(31039)

(16945)

(49)

19097

33896

42018

53305

43880

Long-term loans

22275 27562

29182

29182

64332

37236

11527

17456

17456

16656

Cash credit from banks

11823 7611

13949

12204

12270

8416

11960

12322

10709

320

Capital expenditure gross

96771 99431

100559

102477

106076

106621

105082

101630

97772

90479

Working Capital

3394 (102)

(2595)

751

1798

649

8635

14440

24529

11344

Capital employed

23455 21528

20389

24929

28306

29871

40368

45978

57081

38829

Manpower (No.)

5665 5995

7865

9502

12043

15271

18234

19884

20108

20513

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PRODUCTION PERFORMANCE

TEN YEARS AT GLANCE

 

Products

2004-05 2003-04

2002-03

2001-02

1999-2001

(18months)

1998-99

(12months)

1997-98

(18months)

1996-97

1995-96

1994-95

  1 2 3 4 5 6 7 8 9 10

Ore Raised (‘000 T)

2923 2895

3064

3396 5047

3632

6623

3893

4690

4706

Ore Milled (‘000 T)

3236 2943

3145

3290 5077

3710

6570

3930

4852

4412

Metal in Concentrate (T)

28926 28306

30824

34282 51070

35987

60485

37271

46563

45976

Blister Copper (T)

19292 30870

44594

43637 67326

34925

64182

41416

40259

50454

Cathode (T)

23874 30598

36575

40218 64742

32149

62026

38481

41153

46134

C C Wire rod (T)

27489 28003

30346

29583 46939

26894

50793

41332

37280

32426

Mine Development (M)

770  

1214

2887 4721

8144 

18499

13781

14368

14986

Excavation (Lakh M3)

26.01  

22.24

21.66 44.65

42.79

48.31

30.37

35.16

29.12

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Human Resource

A skilled, committed, motivated and dedicated workforce led by a team of experienced and specialized managers is the strength of HCL. The Company believes in conducting regular and structured training programmes for development and skill up-gradation of its employees and also to prepare them to face future challenges.  A highly successful suggestion scheme encourages suggestions from employees and rewards useful suggestions. HCL is committed to participative management through Shop Councils and Joint Councils at its projects and Joint Consultative Committee and National Joint Committee for Copper at the apex level to enable participa­tion of its workers in management. The Company has excellent industrial relations. 

Strength of Executives and Staff as of 1st August 2005

Location Class I Class II Workmen Total
KCC 276 55 2715 3046
MCP 135 55 871 1061
ICC 152 11 1049 1212
TCP 16 9 105 130
Delhi Office 6 2 10 18
Head Office 59 20 49 128
Mumbai Office 2 1 3 6
Bangalore Office 5 0 3 8
Indore Office 2 0 0 2
TOTAL 653 153 4805 5611

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QUALITY ASSURANCE

High quality of product and associated customer satisfaction is of supreme importance in HCL’s operations. All actions are directed to produce a quality which not only satisfies the customers but prove to be a “CUSTOMERS’ DELIGHT”. In order to achieve this  the Company has accredited itself with ISO 9002 certification for all its products  viz.: Copper Cathode and Copper CC Wirerods. Cathodes produced at Khetri Copper Complex, Rajasthan and Indian Copper Complex, Bihar are ISO 9002 accredited . HCL is the FIRST ISO accredited Company in India in copper production field. 

All the units of HCL  have adequate modern controls, test and analysis facilities  to ensure proper quality at all stages of operation. The raw material input checks , in process controls and final testing of the product are all carried out as per laid down procedures . The final product of copper cathode are sampled batch wise and analysed  by sophisticated  instruments like direct reading Emission Spectrometer, Atomic Absorption Spectro Photometers and LECO Oxygen Analyser. 

At Taloja (C C Rod plant) cathodes are received along with their analysis certificates and finally Wirerods are produced by the Southwire Technology. To ensure quality of the product following in-process checks and controls are routinely exercised as per a laid down procedure.   

  • Monitoring and control of metal temperature and oxygen content at the cast wheel 

  • Molten metal oxygen control by built in CO Analyser 

  • Control  of alcohol content and pH of pickling solution and mill coolant

  • Monitoring and control of hardness of cooling water.

  • Monitoring and control of soundness of cast bar.

  • In line detection of flaws by eddy current flaw detector (Defectomat)

 Final CC rods are subjected to the following qualifying tests before the rods are marketed.

  • Diameter and ovality checks.

  • Oxygen content analysis by LECO Analyser.

  • Reverse twist to failure (RTF) tests.

  • 10 x 10 surface twist test.

  • Percentage Elongation and Tensile Strength tests.

  • Conductivity tests.

  • Depth of surface oxide tests.

  • Spiral Elongation Number (SEN) tests.

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