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Hindustan Zinc set to be world-beater

Business Standard:  April 25, 2008

Jaipur: Hindustan Zinc Ltd (HZL) has announced expansion plans of Rs 3,600 crore.

This will take its integrated zinc-lead capacity to 10.65 million tonnes per annum with fully integrated mining and captive power generation. HZL will become the world's largest integrated zinc-lead producer by 2010.

According to plans, two brownfield smelter projects, which will increase the production capacities of zinc and lead by 210,000 tonnes and 100,000 tonnes, respectively, will be undertaken at Rajpura Dariba in Rajasthan.

HZL expects to increase its silver production from the current levels of 100-120 tonnes a year to approximately 500 tonnes a year, in the form of silver and silver-bearing residue.

A large part of this increase will be in the Sindesar Khurd mine near Udaipur, where silver deposits are approximately 200 parts per million. The expansion will be supported by HZL's strong reserves and resources of 232.3 million tonnes, including 27.5 million tonnes of zinc-lead. To support the increased smelting capacities, HZL will up its ore production capacity at the Rampura Agucha mine from 5 million tonnes a year to 6 million tonnes a year.

Further, ore production at the Sindesar Khurd mine, the new star in HZL's mining portfolio, will be increased from 0.3 million tonnes a year to 1.5 million tonnes a year. HZL will also start mining at the Kayar mine near Ajmer, which will have a production capacity of 300,000 tonnes a year.

In line with the group's philosophy of being a fully self-reliant producer of power, a captive thermal power plant with a capacity of 160 Mw will also be set up in Rajpura Dariba. The zinc and lead smelters, as well as the 160 Mw captive power plant and the Rampura Agucha mine expansion, will be complete by mid-2010.

The expansions at the Sindesar Khurd and Kayar mines will be completed in phases by early 2012.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.