Did Singareni Just Secure a License for Gold and Copper Exploration in Karnataka?
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Synopsis
Singareni Collieries Company Limited has made history by winning its first gold and copper exploration license in Karnataka. This bold step marks a significant shift for the coal mining giant as it ventures into critical mineral exploration, backed by government support and a promising future in mineral resources.
Key Takeaways
- Singareni has won its first license for gold and copper exploration in Karnataka.
- This marks a historic transition from coal mining to critical mineral exploration.
- Exploration efforts will commence soon and are expected to conclude within five years.
- Financial backing includes a Rs 20 crore subsidy from the Central government.
- Successful exploration may lead to significant economic opportunities and royalties for the state.
Hyderabad, Aug 19 (NationPress) The Singareni Collieries Company Limited (SCCL), a state-owned enterprise with a rich history of 136 years in coal mining, is making a groundbreaking move into critical mineral exploration. The company has successfully acquired its inaugural license for gold and copper mining exploration through a competitive auction.
In an auction conducted by the Union Ministry of Mines, SCCL secured the license for mineral exploration in the Devadurga area of Karnataka.
On Tuesday, SCCL proclaimed its achievement as the pioneering coal mining company to obtain a license for surveying gold and copper blocks, winning as the L-1 bidder with a bid of 37.75 percent royalty.
The Exploration Division of Singareni is set to initiate research in the Devadurga region, which has shown potential for gold and copper deposits.
SCCL's Chairman and Managing Director, N. Balram, characterized this event as a historic milestone for the company in the realm of critical mineral exploration.
He further emphasized that this achievement aligns with the vision of the Telangana government to expand SCCL into diverse sectors.
Exploration efforts in the designated area are expected to commence shortly, with completion projected within the next five years. After various exploration phases, SCCL will present its findings to the Government of India, which will subsequently auction the mines for commercial mining based on the assessed reserves.
There will be opportunities for SCCL or other companies to bid for these mines, with royalty payments to the Karnataka government—37.75 percent of which will be allocated to Singareni for the entire lifespan of the mine, as stated by Balram.
The exploration is estimated to cost around Rs 90 crore, with the Central government providing Rs 20 crore in subsidy.
The auction for 13 critical mineral exploration licenses commenced on March 13, 2025, following a recommendation from the Telangana government for Singareni's participation. An expert team was assembled by SCCL to evaluate suitable exploration blocks.
Identified prospective blocks include the Platinum group elements block at Padhar in Madhya Pradesh, rare earth elements blocks at Ontillu and Chandragiri in Andhra Pradesh, and the gold and copper block in Devadurga, Karnataka.
The central government conducted an online auction on August 13, 14, and 19, with Singareni emerging victorious in securing the exploration license for gold and copper in Devadurga on August 19.
Chief Minister A. Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka, responsible for the Energy portfolio, congratulated SCCL on achieving this milestone for the first time through auction. They expressed optimism that Singareni will become a frontrunner in the exploration of key minerals, leveraging its extensive exploration and coal mining expertise.
Point of View
Singareni's entry into gold and copper exploration signifies a progressive move in diversifying India's mining sector. This initiative aligns with the country's ambitions to expand its mineral resource portfolio while enhancing economic growth and employment opportunities in the region. As SCCL leads this charge, it sets a precedent for other state-owned enterprises to explore untapped resources.
NationPress
05/10/2025
Frequently Asked Questions
What is the significance of SCCL's new exploration license?
The license allows SCCL to explore gold and copper, marking a significant shift from coal mining to critical mineral exploration.
How will the exploration process work?
SCCL will conduct various stages of research over five years, ultimately submitting findings to the Government of India for future auctioning.
What financial support is involved?
The exploration is estimated to cost Rs 90 crore, with the Central government providing a Rs 20 crore subsidy.
What are the expected outcomes of this exploration?
Successful exploration may lead to commercial mining opportunities, contributing to the economy and generating royalties.
Who will benefit from the royalties?
The Karnataka government will receive royalties, with 37.75% allocated to Singareni throughout the mine's operational lifespan.
