Zinc output capacity to rise 14%

The zinc production capacity of the country is set to increase by 14 per cent in the current financial year to 707,000 tonnes from 619,000 tonnes in 2007-08.

While Binani Zinc (BZL), the country’s second largest producer, is firming up plans to raise output, the largest player, Hindustan Zinc (HZL), has been expanding capacity anticipating a supply deficit after 3-4 years.
 

RISING FORTUNES Installed capacity in ‘000 tonnes
Year	Hindustan Zinc		Binani Zinc
	Zinc	Lead	Zinc	Lead
2002-03	169	35	28	9.80
2003-04	169	35	28	9.80
2004-05	241	35	33	11.55
2005-06	411	85	33	11.55
2006-07	411	85	33	11.55
2007-08	581	85	38	13.30
2008-09	669	85	38	13.30

BZL’s plan to set up a greenfield project in Rajasthan is in the nascent stage. The company is in talks with the Rajasthan Mineral Development Corporation and others for mandatory approvals.

Meanwhile, the company has chalked out a Rs 500-crore expansion for its plant in Kerala. “We are planning to add one-third of the current 38,000 tonnes-per-annum capacity in Kerala which is likely to be operational by mid 2009,” said Vinod Juneja, deputy managing director, BZL.

HZL has planned a mega expansion, the second phase of which is now under construction. By the end of the third phase in 2010, HZL’s installed capacity will rise up to one million tonnes, making it the world’s largest zinc producer.

The second largest zinc producer in the world now plans to invest Rs 3,600 crore to become the world leader. This investment is set to add 210,000 tonnes of additional zinc, 100,000 tonnes of lead, 160 mw of captive thermal power (two 80 mw plants each) and 300 tonnes of silver output on completion.

The company produces 669,000 tonnes of zinc, 85,000 tonnes of lead, 314 mw of power and 200 tonnes of silver currently.

Since disinvestment in April 2002, HZL has been on an extensive expansion and progress mode. Its metal production capacity grew to 754,000 tonnes in May 2008 from 204,000 tonnes at the time of disinvestment. The mining capacity stands at 7.1 million tonne per annum now.