Singareni bags license for gold, copper exploration in Karnataka

Hyderabad, Aug 19 (IANS) State-owned Singareni Collieries Company Limited (SCCL), which has been in coal mining for 136 years, is set to foray into critical mineral exploration as it won its first gold and copper mining exploration license through auction.

The company secured the license for gold and copper mining exploration in the Devadurga area of Karnataka through the auction conducted by the Union Ministry of Mines.

SCCL announced on Tuesday that it has become the first coal company to secure a license for gold and copper blocks’ survey. It emerged as the L-1 bidder by quoting 37.75 per cent royalty in the online auction.

Singareni’s Exploration Division would soon commence research in the Devadurga region, where gold and copper deposits were traced.

SCCL Chairman and Managing Director N. Balram described this as a historic beginning for the company in the critical mineral exploration.

He also termed this as the first success in line with the Telangana government’s vision to expand SCCL into new sectors.

The exploration in the allotted area in Karnataka would begin soon and would be completed within the next five years. After completing various stages of exploration, SCCL must submit the final results to the Government of India in the form of a report. The Centre would then put up the mines for auction for commercial mining based on the estimated reserves.

There will be an opportunity for Singareni or other companies to acquire these mines. Companies acquiring these mines will have to pay royalty to the Karnataka government, and out of this, 37.75 per cent will go to Singareni throughout the lifetime of the mine, Balram said.

While the cost of this exploration is approximately Rs 90 crore, the Central government will pay Rs 20 crore as a subsidy.

The Centre had initiated the auction of 13 critical mineral exploration licenses on March 13, 2025.

The Telangana government had suggested that the Singareni should participate in this. The company had formed an expert team to study the blocks suitable for exploration.

Platinum group elements block at Padhar in Madhya Pradesh, rare earth elements block at Ontillu, Chandragiri in Andhra Pradesh and gold and copper block at Devadurga in Karnataka were identified as prospective blocks.

For these, the Central government conducted an online auction on August 13, 14 and 19. In the auction held on August 19, Singareni won the exploration license for gold and copper blocks in Devadurga in Karnataka.

Chief Minister A. Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka, who holds the portfolio of Energy, congratulated SCCL on winning the exploration license for gold and copper, for the first time, through auction.

They expressed hope that Singareni will become a leading company in the country in the exploration of key minerals, with its vast exploration experience and coal mining experience.

--IANS

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