Hindustan Copper Ltd. — AGM Information 2021

Sep 22, 2021

CIN No. : L2 720r w Bl967cot02tt25

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No. HCL/SCY/SE/ 2020

The Sr. Generat Manager Dept. of Corporate Services BSE Limited Phiroze Jeejeebhoy To,vers Dalat Street Mumbai 4fi) fi)l BSE Scrip Code: 513599

22d September, 2021

The Vice President Listing Department Nationat Stock Exchange of lndia Ltd Exchange Ptaza, C-l, Btock ^G Bandra-Kurta Complex, Bandra(East) Mumbai 400 051 NSE Symbol: HINDCOPPER

Sir / Madam,

Sub: Proceedines of the 546 Annual General Meetinq of the Comoanv ld on 22d SeDtember. lation 30 of SEBI L ln an Disclosure 1 Recutations. 2015

1. The Proceedings of the 546 Annual General Meeting of Hindustan Copper Ltd hetd on Wednesday, 22d September, 2021 at 11 Ar\t, lndian Standard Time, through Video Conferencing /Other Audio-Visual Means is enctosed.

2. The above is submitted pursuant to Regutation 30 of SEBI (Listing Obtigations and Disctosure Requirements) Regulations, 2015 for information and record ptease.

Thanking you,

Yours faithfulty,

(cssiⁿ ED (Co Secretary) )

Enc[. as stated

The summary of proceedings of the 546 Annual General Meeting (AGil) of Hindustan Copper Ltd. ('the Company') held on Wednesday, 22N September, 2O21 at 11:00 Alrt, lndian Standard Time, through Video Conferencing or Other Audio-Visual Means from ¹1:00 Ait to 12:43 Ptt.

Shri Arun Kumar Shukta, Chairman and Managing Director of the Company, chaired the Annua[ General lleeting (AGM). The Quorum was present throughout the meeting. 108 (One Hundred Eight) Members joined the AGM through Video Conferencing or Other Audio-Visual Means. The business before the meeting was taken up. A copy of the Speech given by Chairman is enclosed.

The Ordinary and Special Business transacted by Members are as listed under Serial No.1 to 12 below. Queries raised by Members during deliberations were replied.

The facitity of casting votes by remote e-voting was provided to the Members from 19th September, 2021 (9:00 AAA) to 21n September, 2021 (5:00 PM). Facitity of e-voting was also provided to the Membe6 during the couce of the meeting. The fotlowing ltems of business as per 54th AGM Notice dated 25.8.2021 were transacted:

Ordinarv Bustness

• 1. Adoption of Audited Financial Statements (Standalone and Consolidated) for the year ended 31st March, 2021 , together with the Reports of the Directors, Auditors and C&AG thereon
• 1. Declaration of dividend on equity shares
• 1. Re-appointment of Shri Arun Kumar Shukta (DlN 03324672), as Director who retires by rotation and being etigibte, offers himself for reappointment
• 1. Re-appointment of Shri Sanjeev Verma (DlN 08836996), as Director who retires by rotation and being etigibte, offers himself for reappointment
• 1. To fix remuneration of the Auditors

Soecial Business

• 1. Appointment of Shri Shakt Atam (DlN 09272903) as part time officiat Director of the Company with effect from 6.8.2021
• 1. Appointment of Shri Sanjay Panjiyar (DlN 02846267) as Director (Operations) of the Company with effect kom 31 .7.2021
• 1. Ratification and confirmation of the remuneration to be paid to M/s. Guha Ghosh Kar & Associates, Cost Auditor of the Company for F\ 2021-22
• 1. Approval to sell, lease, transfer or disposat of Gujarat Copper Project, a Unit of the Company, together with att tangibte and intangible assets and tiabitities as a going concern / on a stump sale basis on an "as is where is" basis
• 1. Approval to offer, issue and attot equity shares through Quatified lnstitutional Placement method
• 1. Approval for constitution of QIP Committee for dealing with att matters pertaining to further issue of shares through Quatified lnstitutional Placement method
• 1. Approval to offer, issue and atlot secured or unsecured non-convertible debentures /Bonds on private placement basis of an amount not more than Rs.500 crore during the next twelve months within the overall borrowing limit of Rs.2,500 crore

All the resotutions as per the Agenda of the meeting were passed by the Members by requisite maiority.

Hindustan Copper Ltmited Chalrman's Speoch

54tr annual General Meeting

2N September, 202 1, Kolkata

Dear Shareholders,

Good morning and a very warn welcome to all of you to the 540, Annual Genera-l Meeting of Hindustan Copper Ltd. This is the second consecutive Annual General Meeting of tJle Company being held virtually to abide by the social distancing norms and in line with the guidelines issued by SEBI and MCA. As the Company Secretar5r has conlirmed that the requisite Quorum is present, I call the meeting to order.

Post first wave of Pandemic, the economy is now gradually emerging from the gloom due to tJle policy and structural reforms, capex push, rapid progress in vaccination and other measures taken by the Government of India. It is expected that revival of the economy will continue at a faster pace in the coming quarters. India reported its best ever quarterly growth of20.I per cent in the frrst quarter of FY 2O2L-22. Mining is among the most impoftant sectors to contribute in achieving India's target of becoming a USD 5 trillion economy by 2025. The Government envisions increasing contribution of Mining Sector from 1.75o/o of GDP curently to 2.5o/o of GDP, with an aim to increase the mineral production output by 2OOo/o in the coming decade.

Annual Report of the Company for FY 2O2O-21 containing the 54o AGM Notice, Directors' Report, Audited Financial Statements for the year ending 3l"t March, 2021 has been circulated to you. I am sure tJlat you have gone through the same and acquainted yourself with the performance of the Company. With your kind permission, I take the Annual Report 2O2O-21 as read.

Now, I would like to discuss about the developments in the Indian economy and Copper sector that has bearing on the metal and mining sector at large. I also take this opportunity to share the Company's performance in the fiscal yeat 2O2O-21.

The Copper Industrv

Due to its inherent properties, Copper is extensively used in the Electrical and Telecommunication IndustrSr with 56% of the total consumption worldwide; Transport, Building & Construction, General Engineering Goods, Process Industries, etc. are the other major users. Global usage of refined copper has enhanced threefold in the last fifty years.

Importance of copper has enhalced as a green metal as it plays a critical role in the world's gradual transition to green enerry and zero-carbon emission goals to control climate change, one of the greatest challenges of tlte recent times. Leading economies are aiming towards more and more adaptation of Electric Vehicles (EV), renewable enerry like solar, wind etc, and demand of copper is expected to soar due to its significant role in enerry storage and transmission. Pandemic has realfrrmed usage of copper in tJle health care sector also due to its antimicrobial properties.

Market research reports show a continual and promising growth path for copper in the coming decades with sharply increasing consumption due to their enormous applications in industry, relative scarcit5l and low resource base similar to tJle geological characteristics of the other Base metals.

Market Trends

Copper is showing sharp growth trend in demand as well as prices since the middle of the year 202O; climbed to the highest in almost a decade i.e. US\$ 10724.5 per tonne at the London Metal exchange (LME) in May 2O2l, an almost lO-year high. Though the LME price has corrected in recent months amid concerns about slowing growth in China and around ttre world in the wake of rising COVID-l9 infections, but still trading above US\$90O0 per tonne. While copper price is volatile, a sharp growth trend has been predicted by analysts and market researchers.

Global Business Scenario

The COVID-l9 related global lockdown has had a notable negative impact on the copper industry worldwide. However, with the adaptation of stricter health protocols and progress in vaccination drives aII over the world copper mine production increased by 4.8o/o in first five months of 2021, with concentrate production increasing by around 6.50/o, and solvent extraction-electrowinning (SX-EW) declining by about 2o/o, as reported by International Copper Study Group (ICSG). During the first five months of. 2021, primary production (electrolytic and electrowinning) is up by 4.3o/o and secondar5r production (from scrap) up by 2o/o. Preliminary data indicates that world apparent refined copper usage has increased by 4.5o/o in first five months of 2O2l .

As predicted by ICSG, World copper mine production is expected to increase by about 3.7o/o from 21.32 million tonnes in CY 2O2l to 22.10 million tonnes in CY 2022.

Indian Copper Scenario

India has only about O.3l o/o of world copper reserves. Mining production is just 0.2% of world's production while refined copper production capacity is about 47o of world's production. The size of Indian Copper Industry (consumption of refined copper per annum) is around 6.6 lakh tonnes, which is only 3olo of world copper market.

Copper consumption in India is expected to grow sharply with the thrust of Govemment towards Make in India', 'Smart City'programs, focus on fast developments in infrastructure sectors, defense, thrust on renewable enerry and electric vehicles (EV) as well as to ensure raw material securit5r and selfreliance under the Aatma Nirbhar Bharat initiatives.

Phystcal performance

The ore production during FY 2020-21was 17.51% less compared to last year primarily due to lockdown and maintaining social distancing norms as per COVID-l9 protocol, suspension of production at Surda Mine, Ghatsila in Jharkhand due to non-renewal of mining lease, low grade of ore and water shortage at Khetri Copper Complex in Rajasthan and low grade of ore in the open pit mine at Malanjkhand Copper Project in Madhya Pradesh.

Malanjkhand mine has reached its ultimate depth and is in a transition phase from open pit to underground mining. The Company is taking requisite action to augment production from mines as well as to enhance mining capacity through ongoing expansion projects.

During 2O2O-21, tlre Company has signed long term agreement with one of Indian conglomerates for sale of around 6O% of its copper concentrate to boost the 'Atmanirbhar Bharat Abhiyan' of the Government of India.

Flnancial performaace

During 2O2O-21, the sales volume was 32,997 tonnes as against 18,408 tonnes in 2Ol9-2O registering an increase of 79.25o/o. The tumover of the Company during the year was Rs. 7760.84 crore as against Rs 8O3.17 crore in previous financial year registering an increase of ll9o/o. The Profit After Tax during FY 2O2O-21 was Rs 109.98 crore as against loss of Rs. 569.35 in FY 2Ol9-2O. Improvement in financial performance during the year was mainly due to sale of unsold stock of Metal in concentrate of around 9500 tonnes coupled with rise in LME Price of Copper, higher Exchange Rate and decrease in operating expenditure.

In tlre month of April, 2O2L, around Rs.5O0 crore was raised by Company through issue and allotment of 4,18,06,02O equity shares of Rs.5/- each at an issue price of Rs.119.60 per equity share to the qualilied institutional buyers. The funds so raised are being utilized towards the Capex/ expansion projects of the Company.

Dividend

The Board of Directors of your Company has recommended payment of dividend equivalent to 7oh on paid-up capital of tJle Company i.e. Re 0.35 per share on Rs 5/- face value for the year 2O2O-21 for your approval in the Annual General Meeting. The outgo on this account will be Rs 33.85 crore.

Brpansion proJects

Your Company has envisaged to increase mine production capacity from eisting around 3.4 MTPA to 12.2 MTPA in first phase which wilI be scaled up to 2O.2 MTPA in second phase in order to boost domestic production of copper and thus reduce dependence on imports.

Development of underground mine at Malanjkhand below the existing open pit mine have achieved two milestones by interconnecting north and south mines at 240 arrd 296 mRL. Actions have been taken to compensate the delays in execution of construction of 5 MTPA underground mines. The project will augment the ore production capacity from 2.0 to 5.O million tonnes per annum.

Altemate Plan has been chalked out to enhance the production from Khetri mine through decline development, where deepening of shaft was halted due to bad ground condition. Provision of resumption of the shaft sinking is being explored parallaly. Production of Banwas block is in ramp up stage.

Surda Mining L€ase extension is expected soon and its operation and expansion work will resume subsequendy. Reopening of Rakha and development of greenfield Chapri mine work through MDO route is expected to start by the end of the Financial Year.

Development work at Kendadih has been completed arrd contract for ore production has already been awarded.

Corporate Govcrnercc

Your Company is committed to comply with the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the guidelines issued by t.l.e Department of Public Enterprises, Government of India relating to the Corporate Governance.

Your Company has requested the Ministry of Mines to fill up the vacant posts of Directors as per applicable guidelines. This is under consideration of the Government.

Your Company has achieved "Excellent" grade for compliance of Corporate Govemance for FY 2O19-20.

CSR / Concern for conmuait5r

Your Company has taken up several projects like promoting preventive health care, making available safe drinking water facility, promoting education, enhancing vocational skills, livelihood opportunities and promoting environment,l sustainability as a part of CSR initiative.

Your Company has combated the COMD 19 outbreak by enhancing public awareness, ensuring COVID appropriate behaviour, undertaking regular sanit2ation progr€un, improving healthcare facilities, abiding by COVID Test / Quarantine norms and participating enthusiastically in vaccination drives.

Hospitals at HCL Units were equipped with multi-bedded COMD Centers with oxygen support and medicines. MCP Unit provided 1O O:rygen Concentrators, mask, PPE kit etc. to ttre COMD Centre at Kendatola to help the State Administration.

KCC Unit donated orrygen-frlled cylinders with flow meter, tubes and masks along with pulse oximeters to the Block Chief Medical Oflicer of the State Govt.

Your Company has spent Rs 86.31 Lakhs for imparting apprenticeship training to 168 persons in FY 2O2O-2l.In KCC Skill Development Institute, established by upgrading the edsting Training Center, a batch of 28 trainees have completed their practical training as Winding Engine Driver'.

Industrial Relations

The Industrial Relations throughout the year remained peaceful and harmonious across the Company. The Trade Unions and Officer's Association extended their full-support and commitment to the Management on important lSSlIeS.

Acknowledgenent

Before I conclude, on behalf of the Board of Directors, I convey my deep gratitude to the Shareholders for their continued support and trust. It will certainly be our endeavor to put in our best efforts for sustained growth, expansion and prosperity of the Company benefitting all stakeholders.

I take this opportunity to thank the Ministry of Mines for their unstinted support and valuable guidance. I also acknowledge the support extended by the State Governments and all other authorities and regulatory agencies.

I would like to thank my colleagues on the Board for their valuable guidance and contribution in steering the Company to higher levels of achievement.

On behalf of the Board, I also take the opportunit5r to acknowledge the efforts, commitment and constructive cooperation of all the employees, Trade Unions, stakeholders in the operations of the Company.

I thank you all once again and offer my best wishes for a very joyous festive season ahead. Please stay safe and take very good care ofyourselves and your family.

Thank you.

Kolkata 22"d September, 2O2L

Arun Kumar Shukla Chairman and Managing Director

(This does not purport to be a reord of the proeedings of the Annual General Meeting)