New Delhi/Hyderabad — In a landmark development, state-owned mining enterprise Singareni Collieries Company Limited (SCCL) has secured an exploration license for gold and copper blocks in Devadurga, Karnataka, through an auction conducted by the Union Ministry of Mines.
The announcement was made on Tuesday, marking SCCL’s strategic foray into critical mineral exploration, a significant departure from its traditional coal mining operations.
A Historic Milestone for SCCL
SCCL Chairman and Managing Director N. Balram stated that the company emerged as the L-1 bidder in the online auction by quoting a royalty rate of 37.75%, which enabled it to win the license. He hailed this achievement as a historic beginning for SCCL’s expansion into non-coal sectors, aligning with the Telangana Government’s vision of diversifying the PSU’s portfolio.
“This is the first step toward establishing Singareni as a leading player in the field of critical mineral exploration,” Balram said.
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Exploration Timeline and Investment
According to the official release, exploration activities will begin soon in the Devadurga region, where deposits of gold and copper have been identified. The project is expected to be completed over the next five years.
The total cost of the exploration is estimated at ₹90 crore, with ₹20 crore being subsidized by the Union Government under its mineral development initiatives.
Next Steps in the Process
Once the exploration is completed, SCCL is required to submit a detailed report of the findings to the central government. Based on the results, the government will auction the mines for commercial mining rights.
Whether SCCL or another company wins the commercial rights, the royalty of 37.75% agreed upon in the auction will continue to benefit SCCL throughout the life of the mine. The royalty will be paid to the Karnataka government, with SCCL receiving a share as part of the agreement.
Support from Telangana Leadership
The achievement was met with praise from Telangana Chief Minister A. Revanth Reddy and Deputy Chief Minister and Energy Minister Bhatti Vikramarka Mallu, who congratulated SCCL for securing the license.
They expressed confidence in SCCL’s ability to excel in mineral exploration, citing its 136-year legacy and established expertise in mining operations.
About SCCL
The Singareni Collieries Company Limited (SCCL) is a public sector coal mining company jointly owned by the Government of Telangana (51%) and the Government of India (49%). With over a century of experience in coal mining, this new venture marks its entry into the exploration of strategic and critical minerals essential for India’s future growth.
