Hindustan Zinc has completed the expansion project at its Chanderiya zinc smelter in Rajasthan. The project involved the construction of a new 1.7 lakh tpa hydro-metallurgical zinc smelter designed by Lurgi, Germany.

Trial production at the smelter has commenced with commercial production expected shortly. The project has taken the Chanderiya smelter's capacity to 2.7 lakh tpa and HZL's overall zinc smelting capacity to slightly over 4 lakh tpa. HZL has two other smelters -- Debari (Rajasthan, 0.78 lakh tpa) and Vizag (Andhra Pradesh, 0.55 lakh tpa.)

The $425 million (approx Rs.2,000 crore) project was completed before the targeted date of July 2005 and about 15 per cent lower than the budgeted cost.

The smelter expansion project also involved setting up of a captive power plant of 154 MW (2x77 MW) and the expansion of mining capacity of the Rampura-Agucha mines from 2.3 million tpa to 3.75 million tpa. Both these project segments now stand completed.

The reserves at the Rampura-Agucha mine, which feeds the smelter, have been increased by 25 per cent, through a separate project by Vedanta's Exploration Division initiated in September 2004. The reserves (proven and probable) at the mine stand at 50.1 million tonnes with 12.8 per cent zinc and 1.9 per cent lead.

Click here for detailed project profile of the Chanderiya Zinc Smelter expansion project.

Also See:

Special Feature "Vedanta Group: A Review of Projects" (March 2005)