Published On:December 20 2023
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"GMDC Invests Rs. 900 Crore in Gujarat's First Underground Copper Mine"
In a strategic move, the state-run Gujarat Mineral Development Corporation (GMDC) is set to invest Rs 900 crore in the development of its maiden underground copper mine in North Gujarat. The project, situated near the revered temple town of Ambaji and the Balaram Ambaji sanctuary, is anticipated to become operational within the next three years.
Roopwant Singh, the Managing Director of GMDC, shared insights into the ambitious venture, stating, “This will be the only copper mine to be developed in the country in the near future. It has more than 7 lakh tonnes of reserves, primarily consisting of copper, zinc, and lead. Our exploratory drilling and sampling have revealed the presence of gold and silver. These base metals occur together.”
Given the nature of the deposits and their proximity to Ambaji town and Balaram Ambaji sanctuary, GMDC faces technical challenges, prompting the need for underground mining operations. Singh acknowledged the complexity of this task, emphasizing, "It will be our first underground mine."
Spread over 184 hectares and located approximately 3 km from Ambaji town, the proposed mine is expected to rival the depth of the Hindustan Zinc mines at Zarwar in Rajasthan. GMDC plans to collaborate with agencies from Australia and South Africa with expertise in developing underground mines to address the technical intricacies involved.
The extracted minerals will undergo separation in a concentrator plant near the mine, with the resulting concentrates being sold to entities in the smelter business. GMDC, a major lignite producer in India, acquired this asset in 1973, and despite a pilot plant in the 1990s, commercial production did not materialize. A recent geo-magnetic survey conducted by GMDC indicated a significant mineral concentration of copper reserves near Ambaji.
To further bolster its reserves, GMDC plans to undertake comprehensive exploration of 1,400 hectares in the adjoining area for the same base metals. The company envisions conducting 15 studies, including a rock mechanics study and deeper drilling, to enhance its understanding of the geological composition and potential of the region.
HBL