India Mines Ministry To Seek Cabinet OK For Hindustan Copper Stake Sale

NEW DELHI, May 10, 2010 (Dow Jones Commodities News via Comtex) -- India's Mines Ministry will seek the federal cabinet's approval for a stake sale in state-run Hindustan Copper Ltd. (513599.BY) within the next 15 days, a senior ministry official said Monday.

The stake sale in the country's third-largest copper producer will raise up to INR46 billion ($1.02 billion), which will be used to fund the government's social and infrastructure projects as well as to part-finance the company's expansion plans.

The government plans to sell a 10% stake in Hindustan Copper, while the company will issue additional 10% fresh equity. The move will bring down the government's holding in the company to 81.45% from 99.59%, the official, who didn't want to be identified, told Dow Jones Newswires.