«CHAPTER - VI C. Hindustan Zinc Limited 1. Introduction 1.1 Hindustan Zinc Limited (HZL) was incorporated in January, 1966 as a public sector company, ...»
CHAPTER - VI
C. Hindustan Zinc Limited
1.1 Hindustan Zinc Limited (HZL) was incorporated in January, 1966 as a public sector company,
after the takeover of the erstwhile Metal Corporation of India Limited, to develop mining and
smelting capacities and to substantially meet the domestic demand of zinc and lead metals. The
company is also operating a small rock phosphate mine. It is one of India's leading base metal
producers, and is unique in the context of its technological versatility coupled with vertical integration in several metals. HZL has been signing Memorandum of Understanding (MoU) with the Government since 1991-92. The Company has been declared a "Mini Ratna".
1.2 The authorised share capital of HZL is Rs. 500 crores. The paid up capital is Rs. 422.53 crores.
The Government holds 76% of the equity. The Government has recently decided to disinvest further 25% of its equity in the domestic market to small investor and employees of the company.
1.3 HZL, with its headquarters at Udaipur, operates five lead-zinc Mines with a total lead-zinc ore production capacity of 3.49 million tonne per annum (tpa) and four smelters with combined installed capacity of 152,000 tpa zinc 43,000 tpa lead. The Company offers a wide range of zinc and lead metal grades to its customers, besides a range of by-products. The ore pro-duction capacity of HZL mines is shown at Table-1.
Table-1 Ore Production Capacity of HZL Mines in tonne per day (tpd) Mines Ore Capacity Zawar Group of Mines District 4000 Udaipur (Rajasthan) Rajpura-Dariba Mine, District 2400 Rajsamand (Rajasthan) Rampura Agucha Mine, District 4500 Bhilwara (Rajasthan) Sargipali Lead Mine, District 500 Sundergarh (Orissa) Agnigundala Lead Mine, 240 District Guntur (Andhra Pradesh) Maton Rock Phosphate Mine, 600 District Udaipur (Rajasthan)
1.4 Zinc and lead metal production capacity of the HZL is shown at Table-2.
Table-2 HZL-Smelterwise Metal Production Capacity (tpa) Smelters Metal Capacity Zinc Lead Debari Zinc 49,000 Smelter, District Udaipur (Rajasthan) Vizag Zinc & Lead 33,000 22,000* Smelter, District Visakhapatnam (Andhra Pradesh) Chanderiya Lead- 70,000 35,000 Zinc Smelter, District Chittorgarh (Rajasthan) Tundoo Lead - 8,000 Smelter, District Dhanbad (Bihar) *Closed down from 1 August 1999 due to pollution problem and economically unviable operations.
2 Physical/Financial performance highlights (April-December, 1999) MoU performance rating provisionally works out to be "Very good".
Net profit earning (PBT) of Rs. 143 crores, compared to the budget of Rs. 100 crores.
Sales turnover of Rs. 1081.47 crores, compared to the budget of Rs. 922.52 crore.
Zinc metal production at 121% of the target.
Zinc metal sale at 108% of the target.
Declaration of the Company as "Mini Ratna" 3 Physical Performance
3.1 The physical performance of the Company is at Table-3.
Table 3 HZL-Production of lead-zinc ore, concentrate and lead-zinc metals (Figures in tonnes)
3.2 The lead-zinc ore and concentrate production are estimated at 97% and 98% respectively of the annual targets. Zinc and lead metal production is estimated at 100% and 83% respectively of the annual target during the current year. Lead production at Vizag Smelter has been stopped from 1 August, 1999 as per directive of Andhra Pradesh Pollution Control Board.
4 Financial Performance
4.1 The financial performance of the Company is given at Table-4.
Table-4 (Rupees in Crores)
5 Export/Import Performance
5.1 The Company expects to export about 30,000 tonne zinc concentrate during the current year.
Imports made by the Company are shown at Table-5 Table-5 HZL-Imports (Rs. in Lakh)
6. Sales Performance
6.1 Zinc sales during the period April-December 1999 were 1,06,707 tonnes. It is expected that sale for the year will be 1,32,000 tonnes. The company expects to export about 30,000 tonnes zinc concentrate during the current year. Lead sales during the period April-December 1999 were 22,148 tonnes. Expected sale during 1999-2000 are 29,000 tonnes.
7. MoU Rating
7.1 The MOU rating achieved by the Company during the last two years is given below :
Year MOU Rating 1997-98 Excellent 1998-99 Very Good (Provisional) 8 Projects
8.1 Kayar lead-zinc prospect, district Ajmer, Rajasthan 8.1.1 HZL acquired mining lease over an area of 4.875 sq. km for Kayar lead-zinc prospect, district Ajmer. In order to delineate the deposit with fair degree of confidence and establish firm geological, geo-technical and metallurgical parameters for preparation of techno-economic feasibility report, an exploration programme comprising 16,800 m of drilling at an estimated cost of Rs. 12 crores has been taken up.
8.2 Jagpura Gold Prospect
8.2.1 HZL is continuing its exploration campaign in Jagpura area, district Banswara where it holds a prospecting licence over 43.10 sq. km. After completing target drilling for oxidised ore in northwest and northeast blocks, exploration is continuing in the southwest and southeast blocks. A total of 10,924.53m of drilling has been carried out under the project so for.
8.3 Zinc Smelter Expansion at Debari & Vizag 8.3.1 As part of augmenting zinc-smelting activities HZL has taken up expansion of its smelter at Debari from present capacity of 49,000 tpa to 59,000 tpa. Similarly capacity of zinc smelter at Vizag is being expanded from its present capacity of 33,000 tpa to 43,000 tpa.
8.4 New Zinc Smelter of 1,00,000 tpa capacity 8.4.1 Based on the detailed feasibility report prepared by M/s Kvaerner Metals, UK. The Company has proposed a new smelter of 1,00000 tpa capacity. The report on Rapid Environment Impact Assessment/Environment Management Plan (EIA/EMP) has been completed and Public Hearing has been successfully held. No Objection Certificate from Rajasthan Pollution Control Board (RPCB) has been received. Application has been filed with Ministry of Environment and Forests (MOEF) for environmental clearance. The Government of Rajasthan has already allotted the Government land. Acquisition proceedings for the private land have already been initiated. The proposal is being examined for approval for investment decision.
8.5 Nickel Technology Proving Plant (Nickel-TPP)
8.5.1 The Nickel-TPP plant has been mechanically completed in September 1999 and no-load trial testing of equipment carried out. Plant operations were started during October 1999 and visit of Multiple Hearth Furnace (MHF) commissioning experts was also planned. However, due to damages to the plant by the super cyclone, plant operations got disrupted, and visit of experts had to be postponed. On completion of repair jobs, the experts visited the plant in December 1999 and the MHF was started for heating and commissioning. The MHF is now ready for process commissioning with chromite overburden (COB) feeding.
8.6 100 MW Power Project
8.6.1 An MOU was signed between HZL and Rajasthan State Mines and Minerals Limited (RSMML) in February 1997 to set-up a 100 MW Power plant. Ministry of Petroleum & Natural Gas has approved allocation of 1,25,000 TPA Naphtha for the project in November 1998. The Government of Rajasthan has finalised and notified the revised captive power plant policy in July
1999. In terms of this policy, the State Government of Rajasthan has cleared in December 1999 the 100 MW Power Plant project through joint venture between HZL and RSMML.
9 International Cooperation
9.1 HZL-BHPM Joint Venture 9.1.1 MOU was signed in October 1994 between HZL and BHP Minerals (BHPM), Australia for carrying out regional exploration in parts of Rajasthan. As per the terms and conditions of the MoU, BHPM will bear the entire expenditure of prospecting/exploration of the completion of pre feasibility study. In case, mineral discovery and the results of pre-feasibility study warrant detailed feasibility study and mine development, all expenditure thereon will be shared by HZL and BHPM in proportion to their participative interest of 40:60, respectively. Airborne geophysical surveys were conducted in two phases (Phase I and II) in 1997-1998 and 1998-1999 respectively. The processing of data generated by aerial surveys and interpretation resulted in identification of anomalies for detailed ground follow-up work by geological, geophysical and geochemical techniques. In all, 53 boreholes were drilled to test 39 anomalies. Thus, so far except for traces of base metal mineralisation, no intersection of economic mineral zone has been encountered in drill tested anomalies. Further ground follow-up is in progress. HZL and BHPM are contemplating to carry out Phase III airborne geophysical survey, in the northern extension part, sometime in the early 2000. The discussions with BHPM are under way to formulate the joint venture structure and other agreements.
9.2 Pac-Lang Joint Venture, Vietnam
9.2.1 HZL has entered into an MOU with BRGM (LaSource) France and Vietnam National Gems and Gold Coorpation (VIGEGO) for a joint venture project to conduct exploration, feasibility study and undertake, if viable, commercial exploitation of Pac Lang Gold project in Vietnam, in an equity split of BRGM-40%, HZL-30%, VIGEGO-30%. Subsequent to the Vietnamese New Mineral Law coming into force from September 1996 and in line with the revised provisions, exploration and prospective licence (EL/PL) applications for 49 sq. km. respectively were submitted to the Vietnamese Government in early 1998. However, the project has not taken off so far, because the Government of Vietnam has not granted EL/PL. The matter is being pursued with the Government of Vietnam.
10 Energy Conservation
10.1 The following measures are being continued with a view to conserve energy in different units
of the company :
Load and Energy Management Measurement and monitoring the consumption of various forms of energy.
Energy audit and survey.
Plugging of losses in energy usage.
Sizing of equipment.
Optimisation of system power factor.
Use of energy efficient systems and equipment.
11.1 All the business application software and process control systems rolled over to year 2000 (Y2K) smoothly. This was achieved by replacing old and obsolete, mini computers by the state the-art Y2K compliant RISC servers with Graphic User Interface (GUI) based system software and development tools.
12 Pollution control and Environment Management Efforts
12.1 Air and water pollution control facilities and plants at all the units of the company have been operating regularly with optimum performance to maintain emissions within permissible limits.
Solid wastes generated at mining units were utilised for raising tailing dam height and filling low lying areas. Excess waste is being properly stacked and stabilised. Regular monitoring of air, water, noise, etc., is being carried out throughout the year. Nearly 8,500 numbers of new saplings were planted during the year in addition to the existing trees being kept well maintained at all the mining units of the company.
13 Salient Aspects of the work being done by Advisory Boards/Councils
13.1 Joint Consultative Committees are functioning in all major units of the Company. The committees consist of representatives from workmen and management, and the areas discussed include production and productivity improvement, reduction in cost of production, etc. The recommendations of the committee are generally implemented. In addition to the Joint Consultative Committees, various other bipartite committees/fora on welfare, safety, canteen management, house allotment, etc., are functioning. The unanimous recommendations of these committees are also generally implemented. The functioning of these bipartite fora have created a conducive climate for better production/productivity at all levels.
14 Research & Development Activities
14.1 Bioreactor Technology 14.1.1 The project aims at setting up a 1 tpd pilot plant at Central Research and Development Laboratory (CRDL) for recovering zinc from Agucha Plant tails through bacterial leaching. As per the Basic Engineering Design Package the cost for setting up 1 tpd pilot plant has increased from Rs. 95 lakhs to Rs. 158 lakhs. The committee constituted by Department of Mines for reviewing the progress of the project (PMC) decided that the techno-economics of the overall process including bioreactor leaching and solvent extraction should be worked to decide whether the project can become economically viable.
14.2 Recovery of Germanium
14.2.1 Germanium is a strategic metal and is presently priced at Rs. 3 to 4 lakhs per kg and has applications in infrared optics, fibre optics, gamma-ray spectroscopy, etc. Our entire requirement is imported. Waelz Kiln Oxide, an intermediate generated in zinc smelter Visakhapatnam, has been identified as potential source (Germanium, 40-50 parts per million). Discussions were held with C MET, Hyderabad for developing flow sheet for Germanium extraction. Analysis of Germanium tetrachloride solution is in progress at C-MET, Hyderabad as also generation of design data for distillation column for purification.
14.3 Manganese Nodule 14.3.1 At the instance of Department of Ocean Development (DOD), a pilot plant of 500 kg/day capacity will be set up at CRDL for recovering Copper (Cu), Nickel (Ni), and Cobalt (Co) from ocean bed Manganese nodules for which processes have been developed by RRL, Bhubaneswar and Bhabha Atomic Research Centre (BARC), Mumbai. EIL has prepared the basic engineering and front-end engineering packages for the pilot plant, which is expected to be commissioned by September 2000.
14.4 Cobalt Metal Recovery