Shares of Hindustan Copper climbed 3.3 percent on Friday, January 6 after the company signed a Memorandum of Understanding (MoU) with IIT Dhanbad for technical collaboration to increase the state-owned firm’s copper ore production.
Nifty Metal index was trading higher by 0.10% in a falling market. The biggest contributors to the metal index were Jindal Stainless that rose 2.25%, HCL, APL Apollo Tubes (0.90%). Biggest losers included JSW Steel (-1.56%) and Hindustan Zinc (-0.8%).
The pact will address HCL's need for technical assistance, guidance and consultancy works, among others, the Union Ministry of Mines said on Wednesday.
During Friday’s trade, the stock opened at a price of Rs. 116.10 per share against the previous close of Rs. 115.55 per share and grew further during the early trading session to touch an intraday high of Rs. 119.45. It was trading at ₹117.65, up by 1.82 percent at 11:45 a.m. on the NSE.
The stock touched a 52-week-high of Rs. 146.35 on February 10, 2022 and a 52-week-low of Rs. 81.20 on June 20, 2022, indicating that at the current level, the stock is trading over 44 percent above its 52-week low and 19.6 percent below its 52 week high.
The stock has grown over 33 percent in the last six months. However, it has declined by almost 11 percent in the last one year. On the other hand, in the past five years, it has returned 26 percent to its shareholders.
The MoU will enable HCL to obtain technical assistance, advice, and consulting services from IIT-ISM for enhancing copper ore production through modifying mining techniques for depth exploration of copper ore.
The first technical collaboration with IIT (ISM), Dhanbad, is a momentous occasion for HCL, the only copper miner in India, owning all the operating mining leases of copper ore in the nation. Presently, majority of ore production comes through underground mode only and the level of ore production is hovering around four million tonnes per annum, the official statement reported.
In the upcoming years, HCL aims to triple the amount of ore it can produce, and most of its mines are either in the midst of development operations or have already begun to prepare for these activities.
The company wants to collaborate with IIT-ISM on R&D initiatives to advance the Indian copper mining industry and to teach and develop HCL engineers and management to expand their skill sets.
IIT-ISM, Dhanbad, being an Institute of national reputation, particularly in mining minerals and its beneficiation and Earth Sciences, will play a key role in solving the emerging geological, technical, environmental, and, sustainable and ore beneficiation issues for achieving the envisaged expansion program of HCL.
Hindustan Copper Ltd., established in 1967, is a mid-cap business with a market capitalization of ₹11,173.96 crores working in the non-ferrous metals industry. It is an India-based vertically integrated copper-producing company. The company manufactures copper from the stage of mining to beneficiation, smelting, refining, and casting of refined copper metal into downstream saleable products.