Mines minister BK Handique on Wednesday said the government is considering divesting its stake in copper producer Hindustan Copper. “The finance ministry has written (to) us regarding disinvestment in Hindustan Copper. Now the board of Hindustan Copper is considering the proposal,” the minister said. The company’s board is likely to come out with the proposal in the next two months, chairman and managing director M Samajpati said.

Hindustan copper may also issue fresh equity along with the government’s stake sale. The company said it plans to use the money to part finance its expansion projects.

The company is revamping its operations and has outlined a capex of Rs 45 crore for the current fiscal. In the last fiscal, it produced 38,000 tonnes of concentrated copper.

Hindustan Copper is listed on the Bombay Stock Exchange. At the end of September quarter, the government held a 99.59 per cent stake in the company. Shares of the company surged 10 per cent to hit its upper trading limit of Rs 255.50 on the BSE.

Nalco director (finance) B L Bagra has said Hindustan Copper will also enter into a joint venture with the aluminium producer to mine Banwas reserves in Rajasthan which has an estimated deposits of 70 lakh tonnes.

“In principle a decision (for JV) has been taken by both the boards. It will be a joint venture between Nalco and Hindustan Copper. It may take a month to finalise the modalities,” Bagra said. The company also plans to reopen its closed mines, including four in Jharkhand.