Hindustan Zinc Set To Become World's Largest Producer

Next year, Hindustan Zinc will become the world's largest integrated zinc-lead producer with a capacity to produce more than 1 million tonne of the metal.

The company said its expansion plans are on track.

A company official told DNA, "The slowdown hasn't affected our plans and we are continuing with our Rs 3,600 crore expansion. We will be completing the project by next year, in line with our earlier commitment."

In the current phase of expansion, Hindustan Zinc is setting up a 210,000 tonnes zinc smelter, a 1 lakh tonne lead smelter and a 160 mw thermal power plant. The company's current metal smelting capacity is 7,54,000 tonnes per annum, which gives it the second position in the global pecking order. Zinc accounts for 669,000 tonnes of this, with the remaining 85,000 tonnes being lead.

Hindustan Zinc is also expanding mining capacity to 9.9 million tonnes from 7.1 million tonnes now at its 4 mines in Rajasthan. Its Rampura-Agucha unit in Bhilwara is already the world's largest zinc-producing mine. On May 7, it announced that the total metal reserves as on March 31 stood at 272 million tonnes. Of this, zinc and lead combined is 31.5 million tonnes.

Hindustan Zinc has come a long way from 2002, when the government divested its stake to Anil Agarwal-promoted Sterlite Industries. That year, the company was producing only 204,000 tonnes of zinc and lead.

It more than doubled its production in 2005-06 to 4,96,000 tonnes. The company completed its second phase of expansion in 2007-08, which took its total capacity to 666,000 tonnes per annum. Anil Agarwal, through Sterlite, today owns close to 65% stake in Hindustan Zinc.

The company has applied to the Bureau of Indian Standards (BIS) to use ISF slag as a performance improver for cement. The official said, "The panel of BIS has recommended it."

He said the company is maintaining zero discharge at all its units. "Last year, more than 2 lakh tonnes of slag was used for making cement. The entire 163,000 tonnes of fly ash generated at our captive power plants at Chanderiya zinc-lead smelter was used for it," he said.

[Note: 1 crore = 10 million; 1 lakh = 100,000]

Source: Daily News And Analysis, Mumbai