Hindustan Zinc Expansion Targets Capacity of 1.065 Million Tons Per Year

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Researched by Industrial Info Resources (Sugar Land, Texas)--Hindustan Zinc Limited (HZL) (Udaipur, Rajasthan), recently announced expansion initiatives with investments of about $900 million that will propel its production capacities of integrated zinc-lead from the current 754,000 tons per annum (TPA) to a total of 1.065 million TPA. Under this initiative, HZL will commission two smelter construction projects at Rajpura Dariba, Rajasthan, that will boost its production capacities of lead and zinc by 100,000 tonnes and 210,000 tonnes, respectively.

HZL also plans to boost its ore production capacity at the Rampura Agucha mine from the present 5 million TPA to 6 million TPA by mid-2010. A similar expansion at the Sindesar Khurd mine, from 300,000 TPA to 1.5 million TPA, will be completed in phases by early 2012. HZL will also commence mining activity that will again be implemented in phases and completed by early 2012 at Kayar to achieve a production capacity of 300,000 TPA.

HZL, which to date has been an entirely self-reliant power producer, will establish a captive 160-megawatt (MW) thermal power plant at Rajpura Dariba. The lead and zinc smelters along, with the power plant, are expected to be operational by mid-2010.

HZL has announced that it is relying on its strong reserves and resources of nearly 232.3 million tons comprising 27.5 million tons of zinc-lead metal for its massive expansion initiative. As of March 31, 2008, the combined reserves and resources position at the Rampura Agucha mine alone had reached 107.3 million tonnes. This has been independently reviewed and certified according to the standards prescribed by the Joint Ore Reserves Committee. HZL has employed the latest geochemical, geophysical and geographic information system technologies in conjunction with high-speed drilling equipment to enhance its exploration capabilities. This is in keeping with the group's philosophy of replacing each ton of ore mined with at least 1 ton of resource.

HZL also expects to boost its production capacity of silver from the current levels of 100 TPA-120 TPA to nearly 500 TPA of silver and silver-bearing residue. This is being largely driven by the silver occurrences at levels of 200 parts per million at the Sindesar Khurd mine and by the use of advanced technology in the new smelters.

HZL is currently the only integrated producer of lead and zinc in India with smelter operations located in Debari, Chanderiya and Vishakhapatnam, and mines in Rampura Agucha, Zawar, Dariba and Sindesar Khurd. The expansion initiative, if successful, will establish the company as the global leader in integrated zinc-lead production by 2010.

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