Hindustan Copper, Coal India Ink MoU to Explore Copper & Critical Minerals Ventures

“In an attempt to bolster India as the critical minerals player at the international forefront, state-owned companies, Hindustan Copper Ltd (HCL) and Coal India Ltd (CIL) today entered into a memorandum of understanding (MoU) for the exploration of joint ventures on copper ore and critical minerals.”

Coal India has clarified that this agreement was signed on June 30 and has been defined as a non-binding exploratory agreement.

The collaboration is aimed at establishing such joint ventures that would be commercially viable and for which possible global partners might be sought along with India, in this effort to secure supply chains of critical minerals, much sought after in green technologies and electronics.

HCL is the only vertically integrated copper producer in India. The company has done extremely well for FY 2024-25. There was a 54% increase in profit before tax from ₹410.43 crore in the previous fiscal year to ₹633.51 crore. The revenue from operations stood at its all-time high of ₹2,070.97 crore, a growth of 21% YoY.

The company operates mines at Malanjkhand in Madhya Pradesh, Khetri in Rajasthan, and Ghatsila in Jharkhand. It remains focused on exploring copper ores, mining them, and benefitting to produce copper concentrates for domestic and international markets.

The MoU has taken shape when the global outlook for critical minerals is still mixed. In Global Critical Minerals Outlook 2025 from the International Energy Agency, it is said that, during 2024, investment growth in the sector saw a sharp slowdown to just 5% against 14% in the previous year. This amount translates into real investment growth of barely 2% after inflation adjustment while exploration activity plateaued.

Though expenditures did increase for lithium, uranium, and copper, spending declined for nickel, cobalt, and zinc. The report states that this is a result of diminished investor sentiment due to low mineral prices and the difficulty of raising funds for startups and new ventures.

The HCL-CIL partnership signifies India’s intention to create inroads into the emerging global supply chains for critical minerals needed for its clean energy and digital ambitions, despite these challenges.