Mumbai: Hindustan Zick Ltd (HZL) launched an expansion project worth £12,000 crore to add a capacity of 250 kilometers per year (KTPA), which means the first phase of its ambitious plan to double metal performance in the next few years.
On Tuesday, the Company’s Council approved the investment in the addition of a new melter in its integrated zinc metal complex in Debari, Rajasthan. The investment also includes the expansion of production capacity in associated mines.
The subsidiary LTD has previously indicated that it will increase its capacity to 2 million tonnes per year (MTPA) from 1.1 million tonnes currently.
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“You can expect in two to three months, a number of notifications of 2 million tons. This is the first part of it,” said ARUN Misra, CEO (CEO) of Hindustan Zick Ltd.
The next phase of expansion is likely to come from the Dariba melting complex in Rajasthan with increased silver and zinc ores from Sindesar Khurd and Zarar Underground Mines in the State.
HZL expects production costs to drop by $ 50 per ton in the near future from $ 1,052 last year to approximately $ 1,000 in this fiscal year as part of its continuing effort to reduce costs. Once the expansion of 250 ktpa has been completed over the upcoming 36 months, the costs are expected to continue to fall further.
“This project comes, after three years we expect production costs between $ 950 and $ 975 per ton,” said Sandeep Modi, CFO of the company.
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Antique Stock Broking analysts reported on Tuesday in the note that double mining capacity to 2 MTPA would help reduce costs due to savings.
“Extension of capacity, zinc and silver prices and lower costs would help profitability,” the analysts said.
HZL shares on Tuesday dropped by 5.2% £486,35.
The company attributed autumn Tuesday as a record date for its £10 On the share of the Provisional Dividend, which was announced last week.
Interest in rare soils
Hindustan Zinc, the largest Indian zinc and silver producer, wants to diversify the production of rare soil elements. India faces acute lack of rare soil materials in China, which controls most of the global offer, limited exports.
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Currently, Indian materials of rare soils used for the production of magnets come from a monazite, a reddish -brown mineral, located in the beach sand along the coast of Kerala, Tamil Nadu, Odisha and Andhra Pradesh. The control board for atomic energy controls the production of monazite.
Misra said that progress in this area would be limited if the Union government does not allow private companies to access and use monazite. However, the government is discussing this and changes are soon expected.
NEHAL KHALIAWAL in Mumbai contributed to this story.
(Tagstotranslate) Hindustan Zinc (T) Dariba Smelting Complex in Rajasthan (T) Silver and Zinc ore Supply (T) Sindesar Khurd and Zarar Underground Mines (T) Antique Stock Broking (T) Elements
