The Shareholders Hindustan Copper Ltd Kolkata

Your Directors have pleasure in presenting the Fifty Seventh Annual Report of Hindustan Copper Ltd (HCL/the Company) together with the audited statement of accounts and Auditors' Report thereon for the year ended 31.03.2025.

The comparative working results for the FY 2024-25 vis-a-vis FY 2023-24 are as under:

(' in crore)

During 2024-25, the Sales of the Company was '2048.11 crore as against '1686.51 crore during FY 2023-24 registering an increase of 21.44%. The Company posted Profit Before Tax from continuing & discontinuing operation of ' 633.51 crore during the year as against '410.43 crore recorded during the previous year registering an increase of 54.35%. The Profit After Tax from continuing & discontinuing operation during FY 2024-25 was '468.53 crore as against '295.41 crore in FY 2023-24 registering an increase of 58.60%. The total borrowing of the Company stood at '166.47 crore as on 31.03.2025 as against '222.46 crore as on 31.03.2024.

The comparative physical performance of production and sales for the year 2024-25 vis-a-vis 2023-24 is as under:

During 2024-25 Malanjkhand Copper Project (MCP) unit of the Company has achieved ore production of 27.252 lakh tonnes which was 103% of the target and 7% higher than FY 2023-24. MCP unit has achieved highest-ever monthly production since inception by producing 3 lakh tonnes of ore in the month of March, 2025. Total ore production at MCP in FY 2024-25 was from underground mine operation only and it was 21% higher than previous financial year. Khetri Copper Complex (KCC) unit of the Company has achieved ore production of 0.7182 million tonnes which was 51% of the target and 42% lower than FY 2023-24. The shortfall in ore production at KCC unit is mainly attributable to a major break down in the winding system of Kolihan mine leading to production loss from mid of May, 2024 onwards (for approx. 10 months) during FY 2024-25. Production at Surda mine in Indian Copper Complex (ICC) unit resumed during FY 2024-25 after approx. four-years gap. The ICC unit has achieved ore production of 30,687 tonnes compared to the annual target of

1,90,000 tonnes in FY 2024-25 due to late execution of the mining lease deed (executed in September, 2024). The overall ore production of HCL 34.74 lakh tonnes during FY 2024-25 was 82% of the target.

Despite 8% growth in MIC production at MCP unit in FY 2024-25 compared to the previous year (FY 2023-24), and the successful commencement of operations of the Mosaboni Concentrator Plant at ICC unit following the start of mining at Surda mine, the overall MIC production was lower during the year. The production of Metal in Concentrate (MIC) at 25,241 tonnes during FY 202425 was 73% of the target and 8% lower than MIC production of 27,404 tonnes in FY 2023-24. This decline was attributed to the suspension of production at Kolihan mine of the KCC unit, due to major breakdown in its winding system during the year.

Cathode and Continuous Cast Wire Rod (CCR) production (Own) remained suspended during the year due to business decision for direct sale of Copper Concentrate. Taloja Copper Project (TCP) unit of the Company however produced 15,218 tonnes of CCR (third party tolling) in FY 2024-25 as compared to 27,833 tonnes produced in FY 2023-24. The Company has been granted license from Bureau of Indian Standard (ISI) mark in the CCR produced at its TCP unit under IS:12444-2020 standard for copper wire rods for electrical applications w.e.f. 17.04.2024.

HCL has achieved Capex of ' 409.89 crores against the target of ' 350 crores in FY 2024-25.

Mr. Satish Chandra Dubey, Hon'ble Minister of State for Coal and Mines, Govt. of India inaugurated the resumption of Surda Mine operations on 05.10.2024 in the presence of Mr. Ramdas Soren, Minister of Water Resources Department, Minister of Higher Education and Minister of Technical Education, Government of Jharkhand, Mr. Bidyut Varan Mahato, Hon'ble MP, Jamshedpur, along with Mr. Sanjiv Kumar Singh, present Chairman and Managing Director, HCL, and the then Director (Mining), HCL, Mr. Ghanshyam Sharma, the then CMD (Addl. Charge) and D(F), HCL, and other dignitaries.

(i) To commence ore production from Kendadih & Rakha Mine at ICC unit, the Company is taking requisite steps for grant of stage -I, Forest Clearance over balance forest area within mining lease and subsequent amendment of Environment Clearance from Ministry of Environment, Forest and Climate Change (MoEF&CC) for execution of lease deed from Government of Jharkhand.

(ii) Commissioning of the Apron Feeder at 0 mRL at Kolihan Mine is expected to be completed by mid of FY 2025-26. On completion, Kolihan mine at KCC will enhance ore production by 12,000 to 15,000 tonnes per month.

(iii) The job of upgradation of the existing Motor-Generator control system of the 1600 KW Service Shaft Winder at Khetri mine has been taken up to operate at its rated capacity. The work is expected to be completed by mid of FY 2025-26.

(iv) To address the water shortage at KCC, the Company has

taken up the matter with the State Government of Rajasthan to increase water supply from the Kumbharam project. Additionally, measures are being implemented to enhance rainwater storage and retention capacity, improve the internal water circulation system to reduce water loss and increase water reclamation from the tailing dam. Furthermore, Nagar Palika, Khetri, Government of Rajasthan is constructing a Sewage Treatment Plant (STP) at KCC, which is nearing completion. The Company has already entered into an agreement with the State Government to receive 1 MLD of treated water from the STP which is expected to commence within 2^nd quarter of FY 2025-26.

(v) Regular review of contractors' performance is being done by MCP, KCC and ICC units, as done in the previous year.

(vi) Regular preventive maintenance of man & material hoisting system is being ensured at the mines of MCP, KCC and ICC units.

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(i) An Agreement has been executed between HCL and Corporacion Nacional Del Cobre (CODELCO) De Chile duly organized and incorporated under the laws of the Republic of Chile on 26.03.2025 for cooperation and exchange of information. The Company exchanged the historical MoU with the State-owned Copper Mining Company of Chile in the presence of Hon'ble Prime

Minister, Shri Narendra Modi, and Chilean President, Mr. Gabriel Boric Font, on 01.04.2025. The main objective of this Agreement is to identify and implement joint activities and to foster strategic partnership in exploration, mining and mineral beneficiation through sharing of knowledge and experience as well as for training employees.

(ii) An MoU has been signed between HCL, Madhya Pradesh State Mining Corporation Ltd and the Directorate of Geology & Mining, Madhya Pradesh at the Global Investor Summit on 25.02.2025 for exploration of critical minerals including copper in Madhya Pradesh.

(iii) M/s National Productivity Council (NPC), a Government of India organization, was engaged by HCL to develop a comprehensive plan for achieving the Company's Net Zero Emission target by 2047, and the detailed report on HCL's Net Zero Plan has been submitted by NPC.

(iv) HCL has been rated “Excellent” by the Department of Public Enterprises (DPE) for FY 2023-24 in terms of Performance against MoU parameters.

The Board of Directors of your Company has recommended payment of dividend equivalent to 29.20% on paid-up capital of the Company i.e. ^1.46 per share on ?5/- face value for the financial year 2024-25 for approval of shareholders in the Annual General Meeting. The outgo on this account will be ^141.19 crore approx.

No material changes and commitment, affecting the financial position of the Company occurred between the end of the financial year to which the financial statements relate and the date of the report.

The status of different continuing mine expansion projects is as under:

The ongoing capacity expansion project at MCP, which involves development of an underground mine beneath the existing opencast mine, is expected to enhance the ore production capacity from 2.5 MTPA to 5.0 MTPA.

Following a seamless transition from open-cast to underground mining in FY 2023-24, the Malanjkhand underground project achieved ore production of 27.252 lakh tonnes in FY 2024-25, representing a 7% increase over the previous year's actual production. The ore production target has been pegged at 29.00 lakh tonnes compared for FY 2025-26 with an envisaged growth of about 6.4 %.

To complete the residual work of underground mine construction for capacity expansion, a consultancy contract was entrusted on MECON, a reputed CPSE Consultancy Organization, for estimation of value of residual work, preparation of NIT document and evaluation of tenders which have been divided in multiple parts (Mine Excavation at North Side, Mine Excavation at South Side, Shaft Furnishing, Men & Material Hoisting system, Crushing & Pumping system, Power system & Main Mechanical Ventilator) to complete the work in an efficient manner. Out of the above multiple parts, the contracts for completion of mine development work at North & South side have been awarded and started in FY 2022-23 and development work is under progress. The tender for Shaft Furnishing, Men & Material Hoisting system and Crushing & Pumping system could not be finalized due to prices being significantly higher than departmental estimate. Main Mechanical Ventilator proposal is to be retendered. Electrical power system is also being retendered after last tender was rejected due to high price.

The 3.00 MTPA paste fill plant for backfilling voids in the underground mine at MCP was commissioned in November, 2024. The plant is expected to facilitate enhanced ore recovery from mine stopes and ensure improved safety standards at the mines.

During FY 2024-25, an underground leaky feeder-based communication system covering 16 km of the mine was successfully installed and commissioned at Malanjkhand underground project. This communication system will facilitate digitization, automation, and enhanced safety in the underground mine.

The proposed expansion of mines at western sector would increase ore production capacity from existing 1.0 MTPA to 3.0 MTPA. Mine-wise status is as under:

(a) Kolihan Mine: The study report of Geophysical Exploration work, undertaken during FY 2021-22, has shown possible extension of ore body up to (-) 300 mRL. Based on the outcome of above work, the validation drilling has been taken up which confirmed the continuity of ore body extension up to (-) 300 mRL, i.e. about 750 m vertical depth. For detailed exploration under G2 level, contract of 27,350 m of depth exploration drilling up to (-)300 mRL has been awarded to EF Mining Pvt. Ltd. in February, 2025 which is under execution. Following the outcome of detailed exploration drilling & techno-economic feasibility; infrastructure development work for capacity expansion will be taken up. Kolihan Mine is already having Environmental Clearance to produce 1.5 MTPA of copper ore.

(b) Khetri Mine: In order to enhance the ore production from mine, contract had been awarded for conversion of track mining to trackless mining at 0 mRL and below in September, 2022 and the work is under progress. For Banwas deposit of Khetri Mine, the Company has appointed contractual agency which produced 3,08,187 tonnes of ore in FY 2024-25. Further, a depth exploration of

58,000 drilling meterage has been taken up to prove the continuity ore body extension up-to (-) 300 mRL and estimation of reserves at deeper level. Company is also in the process of reworking the Phase-II expansion proposal that was undergoing in earlier contract but could not be completed due to encounter of bad ground conditions during shaft sinking process.

During FY 2024-25, MoEF&CC granted Stage I Forest

Clearance for balance 65.52 ha forest area within Surda mining lease on 15.06.2024 based on the recommendation of Forest Advisory Committee, constituted by MoEF&CC on 15.05.2024. Further, the Expert Appraisal Committee (Non-Coal Mining) in its 31^st meeting during 4-5^th July, 2024 in supersession of earlier EAC meeting minutes dated 18-20^th October, 2022 recommended for amendment in Environment Clearance dated

30.05.2022 for Surda mine for production capacity of 0.9 MTPA (ROM) in the mine lease area of 388.86 ha. After submission of above statutory clearances to the Government of Jharkhand, Cabinet of Government of Jharkhand approved the extension of Surda mining lease on 29.08.2024 over an area of 388.68 ha and mining lease was executed on 28.09.2024. Surda mine operations and ore transportation resumed on 05.10.2024. The Surda Mine Plan envisages sinking of shaft, deepening of various winzes to increase production capacity from 0.4 MTPA to 0.9 MTPA.

The Company has initiated action to re-open the closed mines, development of new underground mine at Singhbum Copper Belt of ICC namely, Kendadih and Rakha mines. Mine-wise status is given below:

(a) Kendadih Mine: During FY 2024-25, the Government of Jharkhand extended the Kendadih mining lease for 20 years w.e.f. 03.06.2023 to 02.06.2043 vide order dated

08.10.2024. The validity of the Kendadih mining lease covering an area of 1139.60 ha had expired on 02.06.2023, resulting in the suspension of mine operations. The Government of Jharkhand has recommended the proposal for Stage-I (in-principle) forest clearance for 413.477 ha of balance forest land within the 1139.60ha Kendadih mining lease to the MoEF&CC on 08.04.2025. The proposal is currently under review with MoEF&CC awaiting deliberation and approval. Proposal for amendment of Environment Clearance from existing 726.13 ha to 1139.60 ha over total mining lease area has been submitted on

13.08.2024. After obtaining the necessary statutory clearances, the lease deed will be executed, enabling the commencement of mining operations to enhance the ore production capacity from 0.21 MTPA to 0.45 MTPA. mode. Mining Services Agreement (MSA) has been executed on 06.01.2025 between HCL and South West Mining Ltd (the MDO) for re-opening & expansion of Rakha copper mine, Development of underground mine at Chapri and commissioning of new matching capacity concentrator plant at Rakha for an initial contract period of Twenty (20) years with a provision for further extension of ten (10) years.

During FY 2024-25, the focus on exploration has been enhanced considerably to assess depth extension of the ore bodies in different leases of HCL as well as to enhance copper ore inventory of the Company. During FY 2024-25, 36,499.70 meter of surface drilling and 20,357.40 meter of underground definition drilling have been completed in different leases. General (G2 level) exploration is in progress for Sidheswar Block to prove the ore body up-to (-) 300 mRL for the entire Khetri mining lease area. Depth exploration has been taken up in Kolihan mining lease to explore sustainability of upcoming mining production below the zero (0 mRL) by finding out the copper resource below zero (0 mRL).

The Company added 56.88 million tonnes of Copper Ore in its Reserves & Resource base during FY 2023-24 and as on

01.04.2024, the total Reserve & Resource of Copper Ore within HCL's mining leases was 755.32 million tonnes of ore with average grade of 0.95% copper. It is expected that the exploration activities taken up during the financial year will enhance copper ore Reserves & Resource of the Company.

The geological drilling and associated work completed in FY 2024-25 is highest since last 10 years of the exploration activities undertaken by the Company.

Mr. G. Kishan Reddy, Hon'ble Union Minister of Coal and Mines, along with Mr. Sanjiv Kumar Singh, present CMD, HCL, and the then Director (Mining), HCL, Mr. Ghanshyam Sharma, the then CMD - Addl Charge & D(F), HCL, and other senior officials at the signing of the Mining Services Agreement between Hindustan Copper Limited and South West Mining Limited in Ranchi on 09.01.2025 for for re-opening and expansion of Rakha Copper Mine, development of a new underground mine at Chapri and commissioning of a new concentrator plant for a period of 20 years, extendable by another 10 years.

(b) Rakha mine: During FY 2024-25, the Government of Jharkhand extended the Rakha mining lease for 20 years w.e.f. from 20.08.2021 to 28.08.2041 vide order dated

08.10.2024. The validity of the Rakha mining lease covering an area of 785.091 ha had expired on 28.08.2021, resulting in the suspension of mine operations. The Government of Jharkhand has recommended the proposal for Stage-I (in-principle) forest clearance for balance 98.932 ha of forest land within the 785.091-ha Rakha mining lease to the MoEF&CC on 08.04.2025. The proposal is currently under review with MoEF&CC awaiting deliberation and approval. Proposal for amendment in Environment Clearance from existing 686.159 ha to 785.091 ha over total mining lease area has been submitted on 30.08.2024. After obtaining the necessary statutory clearances, the lease deed will be executed, enabling the commencement of mining operations to enhance the ore production capacity from 0.30 MTPA to

3.00 MTPA through Mine Developer and Operator (MDO)

No significant or material orders have been passed by the Regulators or Courts or Tribunals impacting the going concern status and Company's operations in future.

The Company had raised funds of ^500 crore in April, 2021 through Qualified Institutional Placement (QIP) for meeting expansion/Capex plan of the Company by issuing 4,18,06,020 equity shares of face value of ?5/- each at a price of ^119.60 (including a premium of ^114.60) per share from institutional investors including Mutual Funds, Banks, Insurance companies and FIIs. During the year, the Company has fully utilized the funds raised through QIP as per objects stated in the QIP Document dated 12.04.2021 and there was no deviation in utilization of funds.

A report on Management discussion and analysis of the performance of the Company is given at Annexure-I.

Khanij Bidesh India Ltd (KABIL), a JV company between National Aluminium Company Ltd (NALCO), HCL and Mineral Exploration and Consultancy Ltd (mEcL), was incorporated on 08.08.2019 with the objective to identify, acquire, develop, process and make commercial use of strategic and other minerals in overseas locations for supply to India and boost “Make in India” campaign. The total paid up capital of KABIL as on 31.03.2025 is ^100 crore and shareholding of NALCO, HCL and MECL in KABIL is in the ratio of 40:30:30. The cumulative investment of HCL in KABIL is ^30.00 crore as on 31.03.2025.

Chhattisgarh Copper Ltd, a JV company between HCL and Chhattisgarh Mineral Development Corporation Ltd (CMDC), was incorporated on 21.05.2018 for exploration, mining and beneficiation of copper and its associated minerals in the State of Chhattisgarh. The total paid up capital of CCL as on 31.03.2025 is ^0.73 crore and shareholding of HCL and CMDC in CCL is in the ratio of 74:26. The cumulative investment of HCL in CCL is ^0.54 crore as on 31.03.2025.

Information in respect of Subsidiary, Associate & Joint Venture (Form AOC 1) pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 5 of Companies (Accounts) Rules, 2014 is given in Notes to Financial Statements.

The Company has not taken any deposits covered under or which are not in compliance with the requirements of Chapter V of the Companies Act, 2013.

Detail of RPT in Form AOC-2 is given at Annexure - II. Policy on RPTs and dealing with RPTs has been formulated and put up at the Company's website and can be accessed at https://www.hindustancopper.com/Content/PDF/Policy %20on%20MRPT_RPT.pdf.

The Company is required to maintain cost records as specified by the Central Government under section 148 of the Companies Act, 2013, and accordingly such accounts and records are being maintained.

HCL has achieved the target procurement of 25% from MSEs during the FY 2024-25.

The Company is in compliance with the Maternity Benefit Act, 1961.

Nil during the year.

The Company has in place a Whistle Blower Policy which provide adequate safeguards against victimization of employees / directors who avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases. The Policy has been hosted at the Company's website and can be accessed at https://www.hindustancopper.com/ Content/PDF/Whistle_Blower_Policy.pdf.

Not applicable as no application has been made or proceeding pending under the Insolvency and Bankruptcy Code, 2016.

Not applicable as no one time settlement was done during the year.

The Company has complied with the provisions relating to constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Composition of the Internal Complaints Committee is available at the website of the Company at www.hindustancopper.com.

The Board of Directors of the Company has developed and implemented a Risk Management Policy for the Company including identification therein of elements of risk, which in the opinion of the Board, may threaten the existence of the Company.

The Company has a Board approved 'Dividend Distribution Policy' in place prepared in terms of Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 {SEBI (LODR), 2015}. The Policy is available at the website of the Company and can be accessed at https://www. hindustancopper.com/Content/PDF/Dividend_Distribution_ Policy.pdf.

The Company has in place adequate internal financial control with reference to financial statements commensurate with its size and operations.

Information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is given as Annexure-III forming part of this report.

Mine Safety & Environment management remains the high priority area of the Company. The Company is always aiming to achieve “Zero Accident Potential” and committed to continue sustainable mining by diligently adhering the 'Sustainable Development Framework' stipulated by Indian Bureau of Mines (IBM), Government of India.

The Company continues to maintain the tradition of achieving recognition for its safety performance and, like previous years, this year also received a number of awards in Annual Metalliferous Mine Safety Week under the aegis of respective regional office of Director General of Mine Safety (DGMS), Government of India as detailed below:

i. HCL was felicitated with Mines Safety Award (MSA) 2024 in Kolkata on 28.07.2024. KCC unit won the 3rd prize in the category of Metal Belowground Medium.

HCL was felicitated with Mines Safety Award (MSA) 2024 in Kolkata on 28.07.2024. KCC won the 3rd prize in the category of Metal Belowground Medium.

ii. MCP rescue team won 2^nd prize in the Turnout Drill in the 53^rd Zonal Mine Rescue Competition 2024 held on the 28^th and 29^th October, 2024 at Nagpur.

iii. Khetri and Kolihan copper mines secured 2^nd & 3^rd position respectively in the First Aid Competition organized by Shree Cement at 38^th Mines Safety Week 2024-25, Ajmer Region.

iv. MCP participated in the Trade Test of Metalliferous Mines Safety Week - 2024 held at Tirodi mines on 20.11.2024 and won prizes in the categories of Mining Mate, LHD Operator/ LPDT, Cable Bolt operator, Pump Operator, Welder and Fitter.

v. Rescue team of KCC was awarded as 2^nd best in Overall Performance and Rescue & Recovery in the 53^rd All India Mines Rescue Competition 2024 under the Metalliferous Mine category on 21.12.2024.

Rescue team of KCC being awarded as the 2^nd best in Overall Performance and Rescue & Recovery in the 53^rd All India Mines Rescue Competition 2024 under the Metalliferous Mine category on 21.12.2024.

vi. MCP has won several prizes in the Metalliferous Mines Safety Week Celebration 2024-25, under the aegis of Directorate General of Mines Safety.

vii. In the 62^nd Annual Metalliferous Mines Safety Week Celebration 2024-25, under the aegis of Directorate General of Mines Safety, Chaibasa region, Chaibasa, Surda copper mine of ICC has won four prizes (Group- A3- B) in different categories as under:

(a) 1^st prize in winding, underground machineries, garage, plant & equipment maintenance (Group A3 - A)

(b) 1^st prize in dust control, OHS & first aid (Group A3 - A)

(c) 2^nd prize in statutory manpower, provisions & records (Departmental) (Group A3 - A)

(d) 2^nd prize in mucking, loading & crushing (Group A3 - A)

viii. In the 62^nd Annual Metalliferous Mines Safety Week Celebration 2024-25, under the aegis of Directorate General of Mines Safety, Chaibasa region, Chaibasa, Kendadih copper mine of ICC has won four prizes (Group- A3-B) in different categories as under:

(a) 1^st prize - Winding /underground machineries, garage, plant & equipment maintenance

(b) 2^nd prize in VTC Training facilities/FirstAids

(c) 2^nd prize in Statutory Manpower, provision and records(departmental)

Besides the above, special training, regular refresher training program and on-the-job training are provided to all employees. Safety Campaigns like “Annual Mines Safety Week”, “Fire Services Day”, “Fire services week” and “Industrial Safety Day” celebrations are conducted regularly with active participation of employees in all the Units of HCL.

During the year Malanjkhand Technical Association organised a National Seminar on “Mining and Processing innovations and Technology Perspectives for the NextGen” at Malanjkhand on

23.11.2024. MCP has also successfully organized two significant events on 11.02.2025 aimed at reinforcing safety practices in its mining operations (a) Launch & Distribution of POCKET SOP DIARY - ensuring easy access to critical safety protocols for daily operations and (b) Training on Explosives Safety - A dedicated

Launch and Distribution of POCKET SOP DIARY in MCP on 11.02.2025 ensuring easy access to critical safety protocols for daily operations training session on the storage, transportation, handling and use of explosives in the MCP UG Mine.

During FY 2024-25, following Environmental and Pollution Control Initiative / Measures undertaken:

(i) A Separate pumping system and dedicated pipeline have been installed at the MCP unit for the collection and complete recycling of mine and dump Seepage water. Mine pit water is being recycled through multistage pumping arrangement and collected in recycled holding pond near concentrator plant. From the recycled holding pond it is being supplied to Concentrator plant process. Since inception the project has carried out extensive tree plantation in open areas available within and around the mine premises in consultation with expert agency i.e. Madhya Pradesh Rajya Van Vikash Nigam Limited.

(ii) At MCP unit, mineral handling area has been provided with dust control arrangements. At primary crusher & transfer points water sprinkling system is in place. At secondary, tertiary crushing & screening area water scrubber system is in place. Regular water sprinkling over haul road is being done through three nos. water tankers. Wet drilling is practiced to reduce fugitive emissions. Continuous Ambient Air Quality Measuring Station (CAAQMS) has been installed at Town Administration building premises of MCP unit and the information is uploaded in MPPCB Portal live. Real Time Online Water Monitoring System installed at Chhinditola is functioning properly and the data is transmitted live on MPPCB Portal. Online flow meter with telemetry system have been installed at two different locations (a) Mine dewatering pipeline near reclamation pond, (b) Intake well pipe line near Water Treatment Plant. Environmental display board is installed at R&D Building premises of MCP unit. All Compliances regarding Environment are followed diligently with periodic inspection.

(iii) 100% of Mine discharge water/STP treated water at KCC unit is getting recycled in the system by using it in the mineral processing plant. The air borne dust during various mining operations is regularly suppressed by proper water sprinkling arrangements. Water spraying system on conveyor belt has been installed and effective operation of Rotocyclone has been implemented in concentrator plant for control of dust. Milli Second delay detonators are used in blasting to control noise & ground vibration and to get better fragmentation. Wet drilling is practiced invariably for reducing the generation of dust during drilling operation. Monsoon Plantation drive has been conducted in KCC unit where out of 14,500 saplings procured, 10,500 saplings distributed and 4,000 saplings planted in mines / township area.

(iv) To reduce dependence on fresh water requirement for beneficiation plant operations MoU is singed with Khetri Nagar Palika for supply of 1.2 MLD treated sewage water. This will reduce the fresh water foot print of KCC unit.

(v) Ambient Air, Noise and Effluent Monitoring has been carried out at ICC unit periodically through JSPCB web portal. Desiltation of Mosabani pond has been carried out to enhance the water table. Telemetry based water flow meter has been installed at Surda Mine to check the ground water abstraction. Revamping of STP (Sewage Treatment Plant) rotors for treatment of domestic sewage effluent. ICC unit has distributed 7000 nos. of tree sapling among the local people of the unit. 200 nos. local growing tree saplings planted at Kendadih Mine on the occasion of World Environment Day. Wild life conservation awareness display board has been installed at plant, mines and offices of ICC unit.

(vi) TCP unit has comprehensive effluent treatment system consisting of primary, secondary, and tertiary treatment and being operated continuously to achieve the quality of the treated effluent as per Pollution Control Board. TCP unit is also a member of 'Mumbai Waste Management Limited Taloja, a Common Hazardous Waste Treatment, Storage and Disposal Facility.

(i) Scientific Study and numerical modelling at Malanjkhand underground copper mine is being carried out by M/s CIMFR, Nagpur and M/s NIRM, Nagpur.

(ii) Modelling and simulation studies for designing the ventilation system of MCP is being carried out by PMRC Pvt. Ltd, Dhanbad.

(iii) Slope Monitoring Study of Malanjkhand mine for a period of three years (2023 to 2025) is being carried out by M/s CIMFR, Dhanbad.

(iv) Process audit and capacity augmentation of MCP Concentrator plant under R&D works has been awarded to M/s NML, Jamshedpur.

(v) Initiative has been taken to overcome the problem of deterioration in metallurgical results and improvement in recovery front of KCC concentrator plant by M/s IBM, Nagpur.

(vi) The work of subsidence study for Khetri and Kolihan Mine leases has been awarded to M/s IIT-ISM, Dhanbad.

(vii) R&D work for Development of an IoT (Internet of Things) Enabled Online Monitoring and Data Analysis System for Rock Mechanics Instrumentations at Kolihan Copper Mine has been awarded to M/s IIT-Kharagpur.

(viii) Tailing dam leakage study at KCC unit has been completed.

(ix) Subsidence Monitoring Survey of Surda mining lease, Kendadih mining lease and Rakha mining lease of ICC unit for Three (03) years has been awarded to M/s IIT-ISM, Dhanbad.

(x) Installation of Vibratory Disc Cup Mill Pulverizer at Mosabani of ICC unit for pulverization of ore, tailing and concentrate samples.

(i) HCL has won the ASSOCHAM “Award for Excellence in Non-Coal Mining - Outstanding Contribution in the NonCoal Mining Industry” in Kolkata on 27.09.2024.

(ii) In recognition of the exemplary performance during the National Learning Week, HCL was given a Certificate of Recognition by the Hon'ble Minister of State for Personnel, Public Grievances and Pensions of India, Dr Jitender Singh, during the valediction ceremony of the National Learning Week on 14.11.2024.

(iii) HCL received “CSR Excellence Award” on 16.12.2024 for consistent contribution to CSR in Eastern India for Nation Building in CSR Conclave 2024 organized by CIL at Kolkata.

(iv) Shri Sanjiv Kumar Singh, CMD, HCL was felicitated for his outstanding contributions to the Indian Mining Industry at the Indian Engineering Congress organized by the Institution of Engineers (India) at Kolkata on 21.12.2024.

(v) MCP has bagged overall 1^st prize in underground category along with following 5 prizes in 34^th Mines Environment and Mineral Conservation Week celebration held on 11.01.2025 at Jabalpur under the aegis of IBM, Jabalpur.

(a) 1^st prize in systematic and scientific development

(b) 1^st prize in waste dump management

(c) 1^st prize in environmental monitoring

(d) 2^nd prize in afforestation

(e) 2^nd prize in sustainable development

The CSR Report in the prescribed format as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is at

(b) Training on vigilance administration/ preventive Vigilance fundamentals was imparted among employees of Corporate office;

(c) Seminars were organized on various topics like, Ethics & Governance, HCL (Conduct, Discipline and Appeal) Rules, Public procurement - GeM and its advanced functionalities, Cyber hygiene & Security, Significance of Ethics in a work place, etc.;

(d) A skit was organized by the young & vibrant team members of Bharat Scout & Guides, Shalimar addressing the menace of corruption;

(e) A quiz programme was organized among employees on several vigilance terminologies;

MCP receives overall 1st prize in underground category along with following 5 prizes in 34th Mines Environment and Mineral Conservation Week celebration held on 11.01.2025 at Jabalpur under the aegis of IBM, Jabalpur.

(f) Programs were organized at various schools and colleges to acquaint students with their rights and duties towards the progress of our nation and encourage them to adopt ethical values.

Also, a two-day seminar on “Ethics - The Road to Success” was organized by the vigilance department in January, 2025 which was first of its kind in HCL and served as a pivotal conclave on

The Vigilance Department plays a crucial role in fostering integrity, transparency, and accountability within the organization. It ensures adherence to rules and regulations, prevents misconduct and promotes a culture of ethical behaviour, which eventually paves the way towards enhanced productivity and organizational effectiveness. The role of the department has been highlighted in detail which created a positive vibe among employees and stakeholders resulting in enhancement of productivity of the organization. During the three-month campaign period, as a prelude to Vigilance Awareness Week 2024, following Preventive Vigilance activities have been carried out:

(a) Chief Vigilance Officer, HCL delivered Lecture at NIPER Kolkata and Kendriya Vidyalaya, Ballygunge as outreach programmes;

A two-day seminar on “Ethics - The Road to Success” organized by the Vigilance Department in January, 2025 which served as a pivotal conclave on vigilance administration.

vigilance administration, bringing together CVOs and VOs of Central Public Sector Enterprises in a common forum for interaction. The event provided a dynamic platform for open dialogue and exchange of ideas, wherein participants shared their perspectives on multiple facets of vigilance administration, ethical governance and the challenges of upholding integrity in public service. The discussions focused on the essential role of ethics in public administration, emphasizing how ethical decision-making and value-based governance are critical for fostering transparency, accountability and long-term organizational success.

In adherence to complaint handling mechanism, all the complaints which were received during FY 2024-25 had been disposed within the period of stipulated 90 days from the complaint stage. Systemic suggestions given by Vigilance Department were implemented by the organization to enhance transparency and improve overall efficiency. In totality by addressing issues proactively, organizing awareness campaign through seminars & workshops and streamlining the operations, the objective of reducing complaints, improving the productivity and achieving sustainable growth was achieved.

During FY 2024-25, HCL made constant endeavor to increase the use of Official Language Hindi in its Units/Offices. Hindi Fortnight/Hindi Week/ Hindi Diwas were celebrated in the Units/Offices of HCL from 14.09.2024 to 29.09.2024. On this occasion, the messages of Hon'ble Home Minister, Hon'ble Mines Minister and CMD, HCL were circulated/read out. During the fortnight, various competitions were organized with a view to increase interest among employees towards the Official Language and winners were given awards on closing ceremony held on 30.09.2024. Further, on the occasion of Rajbhasha Diamond Jubilee Year 2024, to increase interest amongst employees & their family members towards the Official Language Hindi a 'Hasya Kavi Sammelan' was organized on

27.09.2024. Apart from this, Hindi competition is also organized in every quarter on different topics. Employees are constantly motivated to use Hindi in their day-to-day official work. Hindi Workshops were conducted at Corporate Office, Units/Offices at

regular intervals. Regular review of progressive use of Hindi was carried out in quarterly meetings of Official Language Implementation Committee under the Chairmanship of CMD at Corporate Office and Unit Heads at Units. During FY 2024-25, HCL participated in the half-yearly meetings organized by the Town Official Language Implementation Committee (PSUs), Kolkata. The progressive use of Hindi is being reviewed regularly at Board meetings. The Company's in-house journal “Tamralipi” is published in Hindi and English languages and uploaded on the Company's website as a digital magazine. All recruitment advertisements were given in bilingual. Notices etc. are uploaded on the Company's website in Hindi and English.

Pursuant to Regulation 34 (2) of SEBI (LODR), 2015, Business Responsibility and Sustainability Report for FY 2024-25 describing various initiatives taken by the Company on social, environmental and governance perspective, is available at the website of the Company and can be accessed at https://hindustancopper.com/Content/PDF/Business- Responsibility-Sustainability-Report-2024-25.pdf

Annual Return pursuant to Section 92(3) of the Companies Act, 2013 is available at the website of the Company and can be accessed at https://hindustancopper.com/Content/Admin/ FlatFile/Annual-Return-2024-25.pdf

Corporate Governance Report as per SEBI (LODR), 2015 is given at Annexure-V forming part of this report together with Certificate on Corporate Governance.

During 2024-25, Eight Board meetings were held on 24.05.2024,

29.06.2024, 26.07.2024, 12.08,2024, 25.09.2024, 11.11.2024, 26.11.2024 and 08.02.2025.

In terms of Section 134(5) of Companies Act, 2013, your Directors confirm:

(i) That in the preparation of the Annual Accounts for the year ended 31^st March, 2025 the applicable Accounting Standards has been followed along with proper explanations relating to material departures.

(ii) That such Accounting Policies have been selected and applied consistently and made adjustments and estimates which are reasonable and prudent so as to give a true and fair view of the State of Affairs of the Company at the end of 31^st March, 2025 and of the Profit and Loss of the Company for the FY 2024-25.

(iii) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) That the Directors have prepared the Annual Accounts on a going concern basis.

(v) That the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively.

(vi) That the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Independent Directors of the Company have given declaration to the effect that they meet the criteria of independence as provided under Section 149(6) of the Companies Act, 2013.

On joining, Independent Directors are familiarized through induction program / presentation with the overview of business, operations, new projects and business model of the Company. Visit to Units is also organized as per their convenience. They are also updated on the changes / developments including in the relevant statutory / regulatory requirements from time-to-time. Detail of Directors' Training / Familiarization Program has been hosted at the Company's website and can be accessed at h t t p s : / / w w w. h i n d u s t a n c o p p e r. c o m / C o n t e n t / P D F / Fam_Pro_Ind_Dir.pdf.

In the opinion of Board, the Independent Directors of HCL are person of integrity and possesses expertise and experience required to discharge their duty.

HCL being a Government Company, performance evaluation of its Directors and criteria of evaluation is decided and undertaken by the Government of India.

The Company has in place a Code of Conduct applicable to the Directors as well as Senior Management and the same has been circulated to all concerned and posted at the Company's website and can be accessed at https://www.hindustancopper.com/ Content/PDF/CC_Dir_Sr_Exe.pdf. All Board members and senior management personnel have affirmed compliance of the Code for the year ended 31^st March, 2025.

During FY 2024-25 following changes took place in the composition of Directors and KMP:

Shri Sanjay Panjiyar ceased to be Director (Operations), HCL on attaining the age of superannuation on 30.06.2024.

Shri Sanjiv Kumar Singh, then Director (Mining), HCL was assigned additional charge of the post of Director (Operations) w.e.f. 01.07.2024 in terms of Ministry of Mines Order No. 10/4/2019 mt. III (Pt.) Part(I) dated 27.06.2024.

Shri Annadevara Gurunadha Krishna Prasad and Shri Avinash Janardan Bhide ceased to be part time non-official (Independent) Directors, HCL on completion of their tenure on 02.11.2024.

Shri Rabindra Prasad Gupta, Ex-Director, Ministry of Mines ceased to be part time official (Government Nominee) Director, HCL on attaining the age of Superannuation on 28.02.2025.

Dr. Sanjeev Kumar Sinha, Deputy General Manager (DGM), NMDC Ltd has been appointed as Director (Operations), HCL w.e.f. the date of assumption of charge i.e, 09.03.2025 in terms of Ministry of Mines Order No. Met.3-10/4/2023-Met.III dated

07.03.2025. Dr. Sinha has been also assigned additional charge of the post of Director (Mining) w.e.f. 28.03.2025 in terms of Ministry of Mines Order No. Met3-10/1/2020- METAL III dated

27.03.2025.

Dr. Ashish Saxena, Deputy Secretary, Ministry of Mines has been appointed as part time official (Government Nominee) Director w.e.f. 20.03.2025 in terms of Ministry of Mines Order No. F. No. 10/2/2002-Met.III dated 19.03.2025.

Smt. Hemlata Verma ceased to be part time non-official (Independent) Director, HCL on completion of her tenure on

21.03.2025.

Shri Sanjiv Kumar Singh, then Director (Mining), HCL has been appointed as Chairman and Managing Director, HCL w.e.f. 21.03.2025 in terms of Ministry of Mines Order No Met.3- 10/2/2022-Met.III dated 21.03.2025. Consequent upon joining of Shri Sanjiv Kumar Singh as Chairman and Managing Director, HCL Shri Ghanshyam Sharma, Director (Finance) ceases to hold Additional Charge of the post of Chairman and Managing Director, HCL w.e.f. 21.03.2025.

The Board places on record its appreciation for the valuable services and contribution made by Shri Sanjay Panjiyar, Shri Annadevara Gurunadha Krishna Prasad, Shri Avinash Janardan Bhide, Shri Rabindra Prasad Gupta and Smt. Hemlata Verma during their tenure on the Board.

Secretarial Audit for FY 2024-25 has been carried out by M/s S Basu & Associates, Practicing Company Secretaries, in compliance with Section 204(1) of the Companies Act, 2013. The Report of the Secretarial Auditor is enclosed at Annexure -VI to this report. Additionally, in compliance with the requirements of Regulation 24A of SEBI (LODR), 2015, the Annual Secretarial Compliance Report has been submitted to the Stock Exchanges within the prescribed timelines. With regard to observations of Secretarial Auditor about composition of the Board, Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee due to vacant post of Directors, it is stated that HCL, being a Government Company and in terms of its Articles of Association, appointment of all Directors on its Board is done by the President of India through orders issued by the Ministry of Mines, Government of India. The Company has no role to play in the appointment process. The Company has requested the Ministry of Mines, Government of India to fill up the vacant posts of Directors and the matter is under consideration of the Government.

M/s. P.A & Associates, Chartered Accountants, Bhubaneswar was appointed as Statutory Auditors to audit the accounts of the Company for the year 2024-25 by Comptroller and Auditor General of India (C&AG).

M/s Chatterjee & Co., Kolkata was appointed as Cost Auditor of

the Company for carrying out the Cost Audit of the mines and plants of the Company in accordance with the provisions of Section 148 of the Companies Act, 2013 and Companies (Cost Records & Audit) Rules, 2014 as amended from time to time for the year 2024-25.

The comments of C&AG under the Companies Act, 2013 on the accounts of the Company for the year ended 31^st March, 2025 are annexed to this report.

Mining operations at Kolihan copper mines of Khetri Copper Complex, Rajasthan has resumed on 10.04.2025 which was temporarily suspended due to accident on 14.05.2024.

The Board of Directors wishes to place on record its sincere appreciation for the dedicated efforts of all employees of the Company during the year under review. The Board is also deeply grateful for the continued guidance and support received from the Ministry of Mines, various other Ministries and Departments of the Government of India, and the State Governments of Rajasthan, Jharkhand, Madhya Pradesh, Maharashtra, Gujarat, and West Bengal. The Board further acknowledges the valuable cooperation extended by the Company's bankers, customers, and the office bearers of the recognized Trade Unions across various Units and the Head Office. Lastly, the Board expresses its heartfelt thanks to all shareholders and investors for their unwavering trust and confidence in the Company.

Copper, a malleable and ductile metallic element, is an excellent conductor of heat and electricity as well as being corrosion resistant and antimicrobial. Copper occurs naturally in the Earth's crust in a variety of forms. It can be found in sulfide deposits (as chalcopyrite, bornite, chalcocite, covellite), in carbonate deposits (as azurite and malachite), in silicate deposits (as chrysycolla and dioptase) and as pure "native" copper.

Demand of copper is increasing due to progress of implementation of electric vehicle worldwide with associated charging infrastructure, decarbonization policy push by US and EU and more and more emphasis on green energy to mitigate climate change. The antimicrobial properties of copper are finding newer application in view of global pandemic situation. Copper being the green metal has been considered as a core driver for moving the global economy toward net zero emissions. Copper has been termed as new oil.

The global demand for copper continues to grow. World refined usage has more than tripled in the last 50 years, thanks to expanding sectors such as electrical & electronic products, building construction, industrial machinery & equipment, transportation equipment, consumer & general products.

The global copper mine production and primary copper production remain flat during last three years and hence the secondary market for scrap copper will play an increasingly important role in meeting future growing demand.

Virtually all products made from copper can be recycled and recycled copper loses none of its physical and chemical properties. Although copper recycling rates are already significant, with over a third of the world's copper currently produced via secondary markets.