Hindustan Copper Secures 20-Year Rakha Mining Lease, Shares Rally Over 5%

Mumbai, September 22, 2025 – The shares of Hindustan Copper Limited (NSE: HINDCOPPER, BSE: 513599) surged over 5% during the early morning trade before consolidating the gains a bit and eventually closing at ₹295.35 (4.42% higher from the previous day’s close) after the company announced the execution of the Rakha Mining Lease Deed with the District Commissioner, Jamshedpur, extending the lease for a further 20 years.

The trading volume throughout the day was dominated by buyers, and the day’s high was ₹305.40 (with 3.54 crore shares exchanged during the day).

Hindustan Copper Limited, a Government of India enterprise, is the country’s only integrated copper producer engaged in mining, beneficiation, smelting, refining, and continuous cast rod production. Listed since September 2010, the company operates across key copper-rich belts in India and plays a strategic role in the nation’s industrial and infrastructure growth.

Share Performance (22-Sep-2025)

On 22nd September 2025, the stock closed at ₹295.35, up 4.42% from its previous close of ₹282.86, with a trading range of ₹282–₹305.40. The VWAP stood at ₹297.60, and total traded volume reached 3.54 crore shares, amounting to a traded value of ₹1,050 crore.

The company’s market capitalization was ₹28,833.76 crore, with a free float market cap of ₹9,744.46 crore. The stock has seen a 52-week high of ₹353 (Oct 1, 2024) and a low of ₹183.82 (Apr 7, 2025). It trades at a P/E ratio of 56.02 and is part of the NIFTY Smallcap 50 index.

Importance of the Lease

The Rakha mining lease, located in Jharkhand, will be a major step in boosting the country’s copper production facility upon reopening. The lease, effective from 19th September 2025, will facilitate operational continuity and enhance long-term supply stability of copper in both domestic and international markets.

The company underlined this development as a critical step for the growth of copper production in the region, in its regulatory filings.

Market Reaction and Outlook

Analysts note that the renewal will strengthen Hindustan Copper’s production visibility and align with the government’s emphasis on mineral self-reliance. With global copper demand on the rise, the lease renewal positions the company to capture growth opportunities in both domestic and export markets.

REF: https://nsearchives.nseindia.com/corporate/HINDCOPPERMKD_19092025171305_Reg30HCLRakhaLeaseDeed19092025.pdf

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