Hindustan Copper receives ₹929 crore demand notice from Jharkhand mining officer

State-owned Hindustan Copper Ltd on Friday (February 13) said it has received a demand notice from the Office of the District Mining Officer, East Singhbhum, Jamshedpur, under the Department of Mines & Geology, Government of Jharkhand.

The notice, issued on February 12, 2026, seeks recovery of a compensation amount of ₹929,40 crore. The company received the communication on February 12, 2026.

The demand pertains to alleged production from the Surda mine without valid statutory clearances or in excess of permissible limits during the period from FY 2000-01 to FY 2016-17. The liability has been cited under Section 21(5) of the Mines and Minerals (Development & Regulation) Act, 1957, in reference to the Common Cause judgment issued by the Supreme Court of India.

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Hindustan Copper has denied the allegations and stated that it is taking appropriate legal action in the matter. The company said the impact on its financials, operations or other activities will be limited to the extent of the final order.

Third Quarter Results

The company's net profit more than doubled from last year to ₹156 crore from ₹63 crore last year. Revenue for the quarter also doubled from the same quarter last year to ₹687.3 crore from ₹327.8 crore in the year-ago period.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter saw a growth of more than 100% from the same quarter last year to ₹244.4 crore from ₹108 crore earlier. Margins for the period expanded by close to 270 basis points from the year-ago period to 35.6% from 32.9% last year.

Hindustan Copper plans to expand mine capacity from around 4 MT to over 12 MT, with capital expenditure of about ₹2,000 crore over the next five to six years. Its management has guided for volume growth of about 20% in FY26 with margins above 40% while stating that the cost of production is roughly $5,500 per tonne.

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Shares of Hindustan Copper Ltd ended at ₹590.35, down by ₹34.25, or 5.48%, on the BSE.