HZL to start new smelter soon

Hindustan Zinc second 1,70,000 TPA (tonnes per annum) smelter at Chanderiya, Rajasthan is being constructed at full swing and may be commissioned ahead of schedule, according to K K Kaura, chairman and CEO, Vedanta Resources.

K K Kaura was addressing the 40th annual general meeting (AGM) of the company in Udaipur.

HZL is India's leading zinc producer and a part of Vedanta Resources, a London listed metals and mining maker.

An 88,000 TPA zinc de-bottlenecking plant and 80 mw captive power plant are on course for timely completion.

The wind energy projects in Karnataka, Gujarat and Maharashtra totalling 110.4 mw, are progressing according to schedule. After completion of these projects, the company will have a total wind power capacity of 148.8 mw.

"Exploration has always been an integral part of HZL's mining strategy. During the last couple of years, the emphasis on exploration has increased in the light of the company's aggressive growth plans", he said.

During 2006-07, the company increased its reserves and resources by 32 million tonnes, an increase of 18 per cent over the previous year net of depletion. The total reserves and resources stand at 209.4 million tonnes, as on 31st March, 2007. There was a global surge in the prices of non-ferrous metals, including zinc and lead, in 2006-07 in response to enhanced consumption in developing countries and mis-match between mining capacity and growing demand, according to Kaura.

The consumption of zinc is 11.82 million tonnes and that of lead is 8.4 million tonnes globally. It is growing at a healthy annual rate of around 3 per cent, driven by rising consumption in China and other developing countries.

With the robust growth in consumption, HZL has a stable outlook on demand and prices. The buoyant GDP growth and encouraging industrial production growth are expected to accelerate the domestic per capita metal consumption. The higher volume from expansion projects would help the company to deliver superior performance in the future, he added.