Gujarat Mineral Development Corporation (GMDC) plans to incur Rs 900 crore on developing its first underground copper mine in North Gujarat. The proposed mine, spread over 184 hectares, is located about three km from Ambaji town. The company expects to commission the mine in the next three years.

A recent geo-magnetic survey conducted by GMDC revealed that the mineral concentration of copper reserves near Ambaji is more than 11.5 percent of the total ore. The company plans to conduct 15 studies, including a rock mechanic study and further exploration, which includes deeper drilling. The extracts will be for sale purposes to entities in the smelter business.

The metals found in the mining concentrate extracted from the mine will be separated in a concentrator plant set up near the mine. It has more than seven lakh tonne of reserves, which primarily consist of copper, zinc and lead. 

Additionally, the company plans to undertake extensive exploration of 1,400 hectares in the adjoining area for the same base metals, to establish one more reserve in the area. GMDC is one of the largest lignite producers in India.