In a first, Telangana’s SCCL bags gold, copper exploration license in Karnataka

Hyderabad: Singareni Collieries Company Limited (SCCL) is foraying into the critical minerals sector.

The 136-year-old Telangana-owned- owned coal mining giant won its first gold and copper exploration license in Karnataka, marking a historic milestone in its diversification journey.

License secured through Government auction

The exploration license covers the Devadurga area in Karnataka and was won through an online auction conducted by the Union Ministry of Mines.

SCCL emerged as the lowest bidder, offering a royalty of 37.75 per cent, making it the first coal company in India to secure a license for gold and copper block exploration.

Exploration to begin soon

SCCL’s Exploration Division will commence work in the Devadurga region, where initial surveys have traced gold and copper deposits. The exploration is expected to be completed within five years.

Upon completion, SCCL will submit a detailed report to the Government of India. Based on estimated reserves, the mines will then be auctioned for commercial operations.

Companies acquiring the mines will pay royalties to the Karnataka government, of which 37.75 per cent will continue to go to SCCL throughout the mine’s lifetime.

Investment and subsidy support

The total exploration cost is estimated at Rs 90 crore, with Rs 20 crore provided as a subsidy by the Central government.

Aligned with Telangana government’s vision

SCCL Chairman and Managing Director N. Balram described the license as a “historic beginning” in critical mineral exploration. He said this move aligns with the Telangana government’s plan to expand SCCL into new sectors.

Other potential exploration blocks identified

Under guidance from the Telangana government, SCCL had formed an expert team to study potential blocks.

Alongside Devadurga, other identified blocks include platinum group elements in Padhar, Madhya Pradesh, and rare earth elements in Ontillu, Chandragiri, Andhra Pradesh.

Chief Minister A Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka, who holds the Energy portfolio, congratulated SCCL for winning the exploration license.

The duo expressed confidence that the company’s vast experience in coal mining and exploration will help it emerge as a leading player in India’s critical minerals sector.