India Resources Ltd. said June 2 that subsidiary IRL Copper Mining Pvt. Ltd. terminated the operations contract with Hindustan Copper Ltd. for the Surda copper mine in India, effective immediately, citing slow progress in the mine's expansion.
The company said it had experienced a significant loss of revenue and profits due to strikes by workers over Hindustan Copper's delay in resolving issues related to the reimbursement of a 40% increase in statutory wages the government put into effect in January.
India Resources and its IRL Copper Mining unit signed an agreement in March 2013 with Shriram EPC Ltd. to conduct the Surda shaft sinking.
In June 2014, the contract was extended until March of this year and was recently further extended by nine months, starting April 1, subject to Hindustan Copper fully reimbursing the additional wages.
India Resources is assessing its options for moving forward with the mine expansion.