New Delhi: Hindustan Zinc Ltd (HZL) will invest Rs 8,000 crore in the next 3-5 years as the Vedanta Group firm looks to expand operations and capacity.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
The firm aims to take the existing ore production levels of 9.36 million tonnes per annum (MTPA) to 14 MTPA and finished metal production to 1.10 MTPA from 0.85 MTPA, Hindustan Zinc said in a statement.
"As the company celebrates its Golden Jubilee year, it is all set to invest another Rs 8,000 crore in the coming 3-5 years on expansion of its mines and smelting operations," it added.
Vedanta Group Chairman Anil Agarwal said: "When we acquired HZL as part of government's disinvestment programme in 2002, our focus was to make India self-sufficient in zinc.
"We are very proud that by adopting latest environment friendly technology, large investment in capacity expansions and continuous exploration, HZL is able to increase production five-fold and yet have reserves for another 30 years."
HZL, which is celebrating 50 years of existence in 2016, has mines located in Agucha, Sindesar Khurd, Zawar, Rajpura Dariba, and Kayad in Rajasthan. Its smelters are located in Dariba, Chanderiya and Debari, also in Rajasthan.
It was formed under an Act of Parliament on January 10, 1966 as an integrated zinc-lead-silver producing company.
In 2002, under the government's disinvestment programme, Hindustan Zinc was acquired by Sterlite, now called Vedanta Ltd.
The investment of Rs 12,000 crore in the past years have brought many changes in not just asset optimisation but also building new facilities into the business to give value to the shareholders, the statement said.
It produces 474 MW of captive thermal power and 274 MW of wind energy.
HZL CEO Sunil Duggal said the firm is exploring new areas where zinc could add value to consumers. "We are exploring the possibilities of galvanizing of car bodies and structures to increase their life-span," he added.
The company is also looking to set-up a new fertiliser plant with a capacity to manufacture 0.5 MTPA of Di-Ammonium Phosphate in district Udaipur with an estimated investment of Rs 1,350 crore.