Hindustan Copper Limited shares declined more than 2% in trade after the company disclosed that it had received a demand notice from the Office of the District Mining Officer, East Singhbhum, Jamshedpur, under the Department of Mines & Geology, Government of Jharkhand.
The notice, dated February 12, 2026, seeks recovery of ₹929.40 crore as compensation. The company confirmed that it received the communication on the same day.
According to the company’s regulatory filing, the demand pertains to alleged production from the Surda mine in Jharkhand without valid statutory clearances or production beyond permissible limits. The period under review spans from FY 2000-01 to FY 2016-17.
The liability has been cited under Section 21(5) of the Mines and Minerals (Development & Regulation) Act, 1957. The notice also refers to the landmark judgment delivered by the Supreme Court of India in the Common Cause case, which addressed issues related to mining operations carried out without necessary approvals.
Hindustan Copper has denied the allegations mentioned in the notice. The company stated that it is taking appropriate legal action to challenge the demand.
In its clarification, the company said that the financial and operational impact will depend on the outcome of the legal proceedings. It added that any effect on its financials, operations, or other activities would be limited to the extent of the final order passed by the competent authority.