HYDERABAD: The Singareni Collieries Company Limited (SCCL) has emerged as the L-1 bidder in the online auction conducted by the Union Ministry of Mines for the exploration of gold and copper deposits at Devadurga in Karnataka. The SCCL quoted a 37.75% royalty. SCCL chairman and managing director N Balaram announced on Tuesday that this marks Singareni’s auspicious beginning in critical mineral exploration.
He stated that this is the first success in line with the state government’s goal of diversifying Singareni into new sectors. Exploration in these mines will be completed within the next five years, he added.
According to a release from SCCL, exploration will soon begin in the gold and copper deposit area of Devadurga, under the supervision of Singareni’s Exploration Division. After conducting various types of surveys and studies, a final report will be submitted to the Centre. Later, the Centre will auction these mines for mining rights.
The company that secures these mines for mining — whether Singareni or another firm — will have to pay 37.75% of the state government’s royalty share to Singareni for the entire life of the mine.