Hindustan Zinc Ltd. Announces Production Results for the Third Quarter and Nine Months Ended December 31, 2012; Approves Next Phase of Growth Plan
January 18, 2013 at 06:47 pm IST
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Hindustan Zinc Ltd. announced production results for the third quarter and nine months ended December 31, 2012. The company reported Mined metal production in the third quarter was up 11% at an all time high of 233,000 tonnes, compared with the corresponding prior quarter. This was 22% higher sequentially and it expects to close the year ahead of last year's production, in accordance with its earlier guidance. Refined Lead production in the third quarter was 32,000 tonnes up 11% and Refined Silver production was 117 tonnes up 103%, as compared with the corresponding prior quarter. This was mainly attributable to higher volume of custom production, as the mined metal production improved progressively during the quarter. Refined Zinc production in the third quarter was down 10% at 171,000 tonnes, as compared with the corresponding prior quarter. It improved 5% on a sequential basis and it expects higher volumes in the fourth quarter.
For the nine months period, the company reported production - Mined Metal Zinc & Lead of 610,000 tonnes against 607,000 tonnes a year ago. Refined Lead production was 90,000 tonnes against 62,000 tonnes a year ago. Refined Zinc production was 495,000 tonnes against 569,000 tonnes a year ago. Refined Silver production was 290 tonnes against 154 tonnes a year ago.
The board of directors has approved the next phase of growth plan. HZL has been actively conducting exploration, which increased net Reserve and Resource across all mines to 332.3 million tonnes in the fiscal 2012. Based on long-term evaluation of assets and in consultation with mining experts, the Company has finalised the next phase of growth plan, which will involve sinking of underground shafts and developing underground mines. The plan comprises of developing a 3.75 mtpa underground mine at Rampura Agucha and expanding Sindesar Khurd mine from 2.0 mtpa to 3.75 mtpa, Zawar mines from 1.2 mtpa to 5.0 mtpa, Rajpura Dariba mine to 1.2 mtpa and Kayad mine to 1.0 mtpa. It will also involve opening up of a small new mine at Bamnia Kalan in Rajpura Dariba belt. The growth plan will increase mined metal (MIC) production capacity to 1.2 mtpa. The mines will be developed using best-in-class technology and equipment and in consultation with global mine experts, ensuring high level of productivity. The projects will be completed in six years and benefit of growth projects will start flowing in from third year, even as projects will continue till fiscal 18-19. Annual capital expenditures for these projects will average USD 250 million a year over next six years.
Hindustan Zinc Limited is an India-based company, which is engaged in exploring, extracting, processing of minerals and manufacturing of metals. The Company operates through two segments: Zinc, Lead, Silver & others, and Wind energy. The Company's operations include five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulfuric acid plants, one silver refinery plant, six captive thermal power plants and four captive solar plants in the state of Rajasthan. Its mines include Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad. The Rampura Agucha Mines hosts India's premier zinc-lead deposit. In addition, the Company also has a rock-phosphate mine in Matoon, near Udaipur in Rajasthan and zinc, lead, silver processing and refining facilities in the state of Uttarakhand. It also has wind power plants in the states of Rajasthan, Gujarat, Karnataka, Tamil Nadu and Maharashtra and solar power plants in the state of Rajasthan.