Hindustan Zinc (HZL), a subsidiary of Vedanta Resources will invest about Rs.3,200 crore to enhance capacity of its lead and zinc smelters and set up a 160 MW captive power plant.

The company envisages to scale up its production to 10.65 lakh tpa annually by 2010. The two brownfield smelter projects, which will increase the production capacities of zinc and lead smelters by 2.10 lakh tpa and 1 lakh tpa, will be undertaken at its Rampura Dariba mines. The total investment in these projects is estimated at Rs.3,600 crore. This investment includes the cost of smelters, captive power facilities, mine development, shaft sinking and other infrastructure.

HZL also expects to increase its silver production from the current levels to 100-120 million tpa to about 500 million tpa mainly from the Sindesar Khurd mine.

The expansion is supported by HZL's reserves of 232.3 million tpa containing 27.5 million tpa of zinc and lead, while the company will set up a 160 MW captive power plant at Rajpur Dariba in Rajasthan. The expansion of Sindesar Khurd and Kayar mines will be completed in phases by 2012.

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HZL to invest Rs.1,500 crore by March 2008 (10-Jul-07)