Vedanta group firm, Hindustan Zinc, is expecting to complete pre-feasibility studies towards doubling its annual output from its eight-odd mines in India to 2 million tonnes (mt) – which include 1.6 mt from zinc, 2,000 tonnes of sliver and 0.4 mt-odd of lead – by mid-September or later.
Also, on cards is doubling of capacities across its existing concentrators and smelters.
According to Arun Misra, CEO, Hindustan Zinc, two Australia-based global consultants have already been appointed. The eight mines are divided into two groups – of four each, and two team of consultants are “on-ground” carrying out studies. The second global consultant firm is currently studying capacities at its manufacturing facilities.
“Once the report is through, by mid-September or later that month, we will take it to the Board for necessary provisions,” he told businessline, adding that the company continues to have a market capitalisation of over $ 34 billion with it having enough resources to fund expansion and capex plans.
“We don’t think funds will be an issue,” Misra said adding that the expansion plan may not immediately require fresh acquisitions.
Hindustan Zinc is the second largest zinc miner globally and the third largest silver producer globally.
The mined metal production in April – June period was 263,000 tonnes, up two per cent y-o-y. Refined zinc metal production was 211,000 tonnes and saleable lead was 51,000 tonnes.
As per Vedanta’s recently approved demerger plans, Hindustan Zinc will focus on resources in India only. And, Vedanta Resources will be tapping into overseas markets for copper and other mineral mining.
“Our focus will be on resources in India only,” he added.
Foray into critical minerals
The zinc-miner will also be tapping into critical mineral mining in India. Some of the minerals in focus include graphite, gold, and other critical minerals.
“We did bid in the just conducted critical mineral auctions in India. We were outbid by some players, and in some of the other blocks which we bid, the auctions were annulled. We will however, continue to bid across these auctions as different blocks open up,” Misra said.
Q1 Results
The Vedanta group firm reported an over 19 per cent rise in consolidated net profit to ₹2,345 crore for June quarter-ending of this fiscal. Net profit for the year-ago-period was ₹1,964 crore.
Sales were at ₹8,130 crore, up 12 per cent y-o-y, on account of better metal volume and due to higher metal and silver prices.
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the quarter under review rose 17 per cent to ₹3,946 crore y-o-y. It stood at Rs 3,359 crore in the year-ago period.
As part of strategic hedging, the company said it has sold forward 90,000 tonnes of zinc production for FY25.