Not Much Progress Made In Saved Licences

Hindustan Zinc is India’s largest and the world’s second largest zinc-lead miner. The company is a subsidiary of Vedanta Limited which owns 64.9 percent stake while the Government of India retains its 29.54 percent. The demand for zinc in India is good with 70 percent of it coming from the galvanising sector which is witnessing a rising penetration of galvanised steel in domestic car models. The on-going restructuring of the steel industry and adherence to the upcoming IS277 coating standards bode well for zinc consumption in India. Apart from already having invested $2 billion, the company plans to invest another $2 billion in 3-5 years’ time, Sunil Duggal, CEO & Managing Director, Hindustan Zinc Limited and President, Federation of Indian Mineral Industries (FIMI), tells Madhumita Mookerji. Excerpts from an interview.

- Madhumita Mookerji

What is the scenario like at present in the zinc industry?

There are no challenges as such. We are the only integrated producer of zinc-led silver in the country. We have sufficient resources. Hindustan Zinc Limited is an integrated mining and resources producer of zinc, lead, silver and cadmium. It is a subsidiary of Vedanta Resources. We produce around 1 million tons of zinc per annum.

Tell us a bit about Hindustan Zinc’s expansion plans.

As I said, we produce around 1 mt of zinc per annum and we are ramping this up to 1.2 mt next year because the volume of silver is also going up 15-20 percent per annum for the last 5-6 years. And this is the rate we want to maintain for the next few years. And eventually, we aim to increase our production to 1.35 mt. We have the resources for about 30 years at the current capacity. We have a brownfield exploration going on within our own mining leases in Rajasthan.

What are the reserves like in that particular mine?

We have 5-6 mines and the total reserves are around 400 mt and a contained metal volume of around 35 mt.

What sort of investments will happen in the expansion plans?

In the last few years, we have spent around $2 billion. We have a plan to invest another $2 billion in 3-5 years’ time. We spend around $500-600 million every year.

How will this investment be funded?

Through our own treasury. We do not borrow any funds.

In which industries does zinc have the most applications?

Zinc is used in galvanisation of cars and automotive industry accessories like car handles, grills. Bathroom accessories also need zinc alloys. We make galvalume sheets which are used in the medicine and healthcare space. There are several other areas too.