SCCL secures gold and copper exploration licence at Devadurga, Karnataka

Singareni Collieries Company Limited has secured its first critical mineral exploration licence for gold and copper blocks at Devadurga, Karnataka. The move marks a historic milestone in SCCL’s diversification, with exploration expected to be completed within five years

Peddapalli: Singareni Collieries Company Limited (SCCL) has made history by entering critical mineral exploration for the first time, securing an exploration licence for gold and copper blocks at Devadurga in Karnataka through an auction conducted by the Union Ministry of Mines.

Announcing the development on Tuesday, SCCL Chairman and Managing Director N Balram said the company emerged as the L-1 bidder by quoting a 37.75 per cent royalty in the online auction.

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Calling it a historic milestone, he said the move aligns with the Telangana government’s vision to expand SCCL into new sectors. Exploration in these mines is expected to be completed within five years.

Singareni’s exploration division will soon begin research in the Devadurga region, where gold and copper deposits have been identified. After completing various stages of exploration, SCCL will submit a report to the Union government, which will then auction the mines for commercial mining.

The company that eventually secures mining rights, whether SCCL or another firm, will pay royalty to the Karnataka government, of which 37.75 per cent will be allocated to SCCL throughout the mine’s life cycle.

The exploration work is estimated to cost Rs 90 crore, with Rs 20 crore to be provided as a subsidy by the Union government.

The Centre initiated the auction of 13 critical mineral exploration licences on March 13, 2025. Acting on the advice of the Telangana government, SCCL participated in three auctions: the Platinum Group Elements block at Padhar in Madhya Pradesh, the Rare Earth Elements block at Ontillu, Chandragiri in Andhra Pradesh, and the Gold and Copper block at Devadurga in Karnataka.

The online auctions were conducted on March 13, 14, and August 19, with final allocations confirmed on Tuesday. SCCL’s acquisition of the Devadurga gold and copper block exploration licence marks a significant milestone in the company’s diversification efforts.