Public sector Hindustan Copper Ltd (HCL) has signed a Memorandum of Understanding with a Madhya Pradesh government undertaking to obtain requisite clearances for its proposed investment of Rs 1856 crore in the state.

The MoU was signed between K.D. Diwan, HCL Chairman-cum-Managing Director and Arun Kumar Bhatt, Managing Director, MP Trade & Investment Facilitation Corporation Ltd (TRIFAC), at a recent global investor summit in Indore.

HCL plans to build a five million tonne capacity underground mine beneath its present opencast mine at Malanjkhand, by 2017-18.

The MoU would enable HCL to obtain necessary clearances, concessions and waivers for the Malanjkhand project from the State Government, according to a HCL release. The government would have the right to terminate the MoU, if HCL does not initiate work on the project in six months.