Hind Copper will do better than last fiscal: MD AK Shukla

India's largest integrated copper producer, Hindustan Copper expects the current fiscal to be better than the previous year with better realisations and higher copper prices, its chairman and managing director AK Shukla told ET in an interview. Edited excerpts:

Do you see the company meeting the sales target of ₹2,209 crore for 2022-23 given that sales in the first nine months up to December have been just a little over half at ₹1,162 crore?
We expect the physical performance of the company to improve this financial year compared to the last. Sales, however, are directly linked to the London Metal Exchange (LME) price of copper and the dollar-rupee exchange rate. The company is striving to do better than last year's production, but being a listed company, we cannot disclose more.


Hindustan Copper had set a capital expenditure target of ₹350 crore for FY23. How much have you spent so far and where?
We have spent around Rs 224 crore on capital expenditure till the end of the December quarter, and most of this has been spent on the underground mine expansion and development at Malanjkhand in Madhya Pradesh. We have already taken shareholder approval for raising funds through a qualified institutional placement (QIP). The funds will be raised as and when required.

What is the progress of the capacity expansion at your various mines, and when are these additional capacities expected to be commissioned?
The additional capacity expansion at Malanjkhand mine to five million tonnes and the Khetri mine to 3 mt are underway. Initial production from declines at Malanjkhand underground mine has already commenced. Expansion at Surda is awaiting regulatory approvals.

The company has produced around 18,300 tonnes of MIC (metal in concentrate) as of the end of the December quarter, and we are trying our best to increase production.

As per Goldman Sachs, copper prices on the LME are expected to average around $9,750 per tonne this year with average price jumping to $12,000 by 2024.

Is Hindustan Copper planning to strategically venture into value-added products over the medium term?
The company is focusing on its core business of mining and selling of copper concentrate, which gives it the highest margins. The demand for copper in India in FY24 is expected to be bullish on account of infrastructure projects, smart cities, emphasis on renewable energy, and electric vehicles, etc.