Hind Zinc prepares Rs 10,000-cr blueprint for green energy, diversification

Company working on decarbonising operations; to set up fertiliser plant in the next two years, says CEO

Udaipur-based Hindustan Zinc, the world's second-largest zinc producer, is putting in place a blueprint that will help it accelerate its pace of decarbonisation and tap new areas for growth.

For this, the Vedanta group company has lined up over Rs 10,000 crore in investments over the next few years. Almost Rs 8,000 crore will be spent in shifting to battery-powered vehicles at all its mines in Rajasthan and sourcing up to 200 Mw of renewable energy for its operations, Arun Misra, chief executive officer, Hindustan Zinc said in a conversation with Business Standard.

Another Rs 2,200-2,500 crore will be spent on setting up a fertiliser plant and a roaster unit at Chanderiya, Rajasthan in the next two years, he said. The aim here is to better utilise sulphuric acid, which is a by-product of zinc smelting.

"We are committed to being net-carbon zero by 2050. A big step in this direction is the adoption of battery-powered underground mining vehicles. It can significantly cut carbon emissions, since we use diesel-run vehicles right now for our mining operations," Misra said.

Four battery-powered vans have been introduced on a trial basis at some of Hindustan Zinc's mines, which will slowly be increased in number in the months ahead, Misra said. The company uses almost 900 mining vehicles across its eight mines in Rajasthan.

The switch to green energy, on the other hand, will help the firm cut its power costs, since coal supply and prices remain volatile. The plan is to cut thermal power intake by up to 40 per cent by March 2024 and fully by 2027, Misra says.

The company currently has a 475-Mw captive thermal plant at its main smelter unit at Chanderiya. It also sources over 275 Mw of wind and 40 Mw of solar energy for its operations.

The company has a current mining capacity of about 1.1 million tonnes per annum. This is expected to touch 1.2 million tonnes over the next few quarters, Misra said.

He also remains optimistic about zinc demand and production over the next few months, despite concerns of a looming global recession and the likelihood of lockdowns being re-introduced globally as Covid-19 cases begin to rise across markets.

Though Europe is likely to remain sluggish in terms of demand and growth due to the ongoing Russia-Ukraine war, the US market and other emerging countries will contribute to stable demand in the March quarter, Misra said.

Demand in India remains robust, Misra says, as the government’s infrastructure push will continue to drive the need for zinc, which is used to build galvanised road, rail and power transmission lines.