Silver production at Hindustan Zinc is likely to touch 500 tonnes by 2013 with the expansion of Sindesar Khurd mine in Rajasthan.
The company produced 70 tonnes of silver up to December and expects to register an output of 100 tonnes in the financial year 2008-09, said a company source. The company increased output of about 51.30 tonnes in 2006-07 to 80.40 tonnes in 2007-08.
Hindustan Zinc produces silver as a by-product with lead. “We have been constantly increasing silver production in the last few years. By 2013, we will be producing 500 tonnes of silver. This is going to boost the domestic ancillary industry,” said Akhilesh Joshi, Chief Operating Officer, Hindustan Zinc.
A large part of the increase was attributed to ores from the Sindesar Khurd mine where the silver occurrences are about 200 ppm (part per million) and use of appropriate technology in the new smelters. Further, ore production at the Sindesar Khurd mine will increase from 0.3 million tonnes per annum to 1.5 mtpa, company sources said.
Once the expansion is completed in 2013, Hindustan Zinc will become the largest silver producer in Asia and will be among the world’s top six silver producers. The world’s largest primary silver manufacturer, Mexico-based Fresnillo Plc, produced 1,084 tonnes in 2008 followed by Canada-based Pan Amercian Silver accounting for 622 tpa, while Kazakhstan-based Kazakhmys Plc is Asia’s largest silver producer at little less than 500 tpa. Hindustan Zinc last year proposed to invest Rs 3,600 crore to enhance capacity of smelters, captive power facilities, mine development, shaft sinking and other infrastructure. The company has total reserves and resources of 232.3 million tonnes (mt).
Silver output is likely to increase with other metal production. At present the company has zinc production capacity of 7.54 lakh tpa to 6.69 ltpa and 85,000 tpa of lead. The mining capacity stands at 7.1 mtpa. The company has captive mines in Rampura Agucha, Rajpura Dariba and Zawar in Rajastahan and smelters at Chanderiya and Debari (Rajasthan) and Visakhapatnam in Andhra Pradesh.
Domestic market
The annual demand for silver is about 3,200 tonnes of which 77.1 per cent is met through imports, 18.8 per cent from secondary silver, 2.5 per cent from Hindustan Zinc and 1.7 per cent from Hindalco Industries.
Of the total demand, industrial uses account for 50 per cent, jewellery and silver ware 39 per cent, coins and medals 9 per cent and about 1 per cent each from photography and implied net investment. Silver, which has no substitute, is known for unique properties such as strength, sensitivity, malleability and ductility, electrical and thermal conductivity and high reflectance of light and also the ability to endure extreme temperature ranges.
Apart from jewellery and coinage it is used in photography, batteries, electronic equipment, medical applications, mirrors and coatings, solar energy, water purification, brazing, soldering and bearings.
Source: Hindu Business Line
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