Hindustan Zinc Ltd (HZL), a subsidiary of London-based Vedanta Resources Plc, emerges as the world’s largest integrated zinc-lead producer.
MUMBAI: Hindustan Zinc Ltd (HZL), a subsidiary of London-based Vedanta Resources Plc, has lined up an investment of Rs 3,600 crore to emerge as the world’s largest integrated zinc-lead producer.
The company plans to invest the amount in the next four years in two brownfield smelter projects, which will increase the production capacities of zinc and lead by 210,000 tonnes per annum and 100,000 tonnes per annum, respectively.
The expansion will be taken up at its Rajpura Dariba facility in Rajasthan.
M S Mehta, chief executive officer, HZL, said in a conference call on Thursday that the company is targeting a production figure of over 1 million tonne by 2012, which will comprise two different expansion projects in zinc and lead.
Once the expansions are complete, the total capacity of zinc and lead will go up to 1,065,000 tonnes per annum (tpa) which will make it the largest integrated zinc-lead producer in the world.
The investments will mainly include the cost of the smelters, captive power facilities, mine development and shaft sinking and other infrastructure.
Mehta said ore production at the Sindesar Khurd mine will also be increased from 0.3 million tpa to 1.5 million tpa.
HZL will also start mining activity at the Kayar mine which will have a production capacity of 0.3 million tpa.
“To support the increased smelting capacities, HZL will expand its ore production capacity at the Rampura Agucha mine from 5 mtpa to 6 mtpa,” he said.
HZL, in a notice to the stock exchange said, “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 at Rajpura Dariba.”
Mehta said the company has access to a coal mine in consortium with five other players and declined to comment further on the status of the same. He, however, said, the mine is expected to start production by last quarter of 2009. The company’s share in the mine is expected to be close to 32 million tonnes.
Mehta said the company expects to achieve a production target of 750,000 tpa after the debottlenecking of its capacities which is expected to add 88,000 tpa.
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