Hind Copper sees output fall

Print this page Posted on : 11-22-2008 by recycleinme.com

Mumbai, Nov. 21Hindustan Copper Ltd is expecting production to fall by up to 20 per cent in the fiscal year ending March 2009 because of an extended smelter shutdown, a senior company official said. Slowing global demand for copper had hurt HCL and its margins would be under pressure from falling copper ore prices, finance director Mr M. Samajpati told reporters at an industry conference. HCL produced 44,734 tonnes of copper in 2007/08 ''It may be 10 to 20 per cent less,'' Mr Samajpati said of production in 2008/09, adding the fall was due to a prolonged shutdown in a smelter in Jharkhand. ''It has taken a bit longer... we had gone for a technological upgradation also,'' he said. The smelter was closed in April and restarted in September, longer than the usual shutdown of 60 days, he said. ''Definitely we have been affected very much as copper prices have gone down. It is not viable for us unless prices are at around $4,500 per tonne and above,'' he said. Mr Samajpati said the HCL planned to reopen closed mines and increase capacity at existing mines so that it can become more self-sufficient.

Source : Business Line