Hindustan Zinc (HZL) has prepared an investment plan for USD two billion (Rs 14,000 crore) over the next five years to raise annual capacity to 1.5 million tonne from the current 0.8 million tonne.
The work is in planning stage for capacity expansion to 1.35 million tonne, which will take two to three years. It then aims to go to 1.5 million tonne, which will take another two years.
At present, the company is in the final leg of plan to raise capacity to 1.2 million tonne, from 0.8 million tonne. This is scheduled for completion in the Q4/FY20.
The entire expansion will be funded via internal accruals and every phase (to 1.35 million tonne and then 1.5 million tonne) will need USD one billion each. The company also plans to raise its exposure in high premium value-added products to 50 percent from the current 25 percent. HZL is an integrated zinc-lead-silver producer.
The mines are at Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad in Rajasthan. The capacity increase to 1.2 million tonne will lead to annual silver production of 900-1,000 tonne. When zinc capacity touches 1.5 million tonne in five years, silver production will have hit 1,400 tonne.