Calcutta, April 5: Codelco, the world’s largest copper company based in Chile, is planning to tap the country’s copper mining sector with a substantial investment.

This is the first time that the state-run Chilean company is eyeing a country in Asia where the demand-supply gap for copper-ore has widened by over two million tonnes.

According to sources, the company has started gathering data and other related information through various agencies before entering the subcontinent’s mining sector.

A top Codelco executive, Jurgen Leibhrandt, has discussed the copper mining potential in the country with the chairman of state-run Hindustan Copper Ltd, Rana Som.

Confirming this, Som said at this point of time HCL is not planning to enter into any alliance with Codelco for mining activities. “But I have apprised him (Leibhrandt) of the huge opportunities available in India as far as copper reserves are concerned. Now it is up to them to take a final decision,” Som said.

Following HCL’s information on the copper reserves, Codelco has appointed a metal consulting group to study the mining potential.

Sources said the South American monolith is keen on extracting copper-ore in huge quantities to achieve economies of scale. Moreover, the transport of the ore will also be cost effective if the quantity is more, they added.

The country’s total proven reserves of copper is estimated at 537 million tonnes, which is one of the largest reserves in the world. Major copper reserves are located in Madhya Pradesh, Rajasthan and Chattisgarh.

“In fact, very few people know that India does have a reasonably strong reserve of copper. I told Codelco that they will benefit by investing in the country’s mining sector, which is still in a nascent stage,” Som said.

Hindustan Copper possesses mining leases for over 354 million tonnes of copper out of the overall 537 million tonnes.