Singareni Collieries signs pact to explore gold, copper in Karnataka

Hyderabad: Singareni Collieries Company Limited (SCCL) has signed an agreement with the Karnataka Department of Mines and Geology (DMG) to formally begin exploration of gold and copper deposits in the Devadurga Block, spread across Raichur and Yadgir districts. The agreement, signed in Bengaluru on Thursday, marks a major step for the Telangana-based public sector undertaking as it expands its mineral exploration footprint beyond its home state.

Under the terms of the agreement, SCCL will complete the exploration of the 199.13 square kilometre Devadurga Block within five years. The company had earlier secured the exploration licence for the block through the Government of India's mineral auction process. The pact was signed by Karnataka DMG Director Rangappa and SCCL Director (Projects and Planning) K. Venkateshwarlu.

Speaking on the occasion, Mr. Venkateshwarlu said this is the first time in SCCL's history that the company is undertaking mineral exploration of this scale outside Telangana. He expressed confidence that the project would be completed successfully, drawing on SCCL's more than 130 years of expertise in geological surveys and mineral exploration.

The Devadurga block is located in the northern part of Karnataka, an area known for its geological potential. The exploration will involve detailed surveys, drilling, and analysis to assess the viability of gold and copper extraction. This is part of a broader push by the central and state governments to tap into the country's mineral wealth through transparent auction processes.

For SCCL, traditionally a coal-mining company, this venture into non-coal minerals represents a diversification strategy. The company has been exploring opportunities to expand beyond its core business of coal production, which is primarily concentrated in the Pranahita-Godavari valley in Telangana. The Karnataka project could open up new revenue streams and strengthen the company's position as a multi-mineral explorer.

The agreement underscores the growing inter-state cooperation in the mining sector. Karnataka, which has rich mineral resources, will benefit from SCCL's technical expertise, while SCCL gains access to new resources. The outcome of the exploration will be closely watched by industry analysts, as gold and copper are crucial for India's industrial and economic growth.

The exploration activities are expected to follow environmental and safety guidelines set by regulatory authorities. The state government and SCCL have assured that due diligence will be observed during the project. If successful, the Devadurga block could pave the way for more joint ventures between states in the mineral sector.