Hindustan Zinc will rework mining plans to boost volumes

Analysts see lower volumes, higher cost of production going ahead

Hindustan Zinc, a Vedanta Resources company that did not meet its 2013-14 mining target, will rework its plan for the world’s largest lead-zinc deposits, the Rampura Agucha mine in Rajasthan.

The company’s mined metal production for the year ended March was 880,000 tonnes, down from its target of 1 million tonnes announced in the beginning of the financial year.

“Production in the second half of 2013-14 was lower than what we had planned initially due to a slower than expected ramp-up of underground mining projects and changes in the mining sequence,” Hindustan Zinc said in a statement.

The Rampura Agucha mine accounts for over 75 per cent of Hindustan Zinc’s ore needs. The company’s other mines at Sindesar Khurd, Rajpura Dariba, Kayar, and Zawar are also in Rajasthan.