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Smelters and Captive Power Plant (CPP) Opening New Vistas of Growth
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Smelters Performance Overview

Hindustan Zinc continued to notch new milestones and surge towards new vistas of growth in its smelters business during FY 2022-23. Its 1 million tonnes refined metal production landmark underscored the success of its initiatives in the smelters business to promote efficiencies and sustainable growth.

Promoting Wealth from Waste

As part of our efforts to manage waste effectively and productively, we enhanced our copper sulphate (CuSO4) production through appropriate modifications in the charging system and operational parameters. This has enabled us to ensure better-quality production of CuSO4 solution in comparison with that produced earlier. The initiative has led to more cost-effective production, improved ore recovery and enhanced safety due to reduced consumption of hazardous chemicals like liquor ammonia and liquid carbon dioxide.

Last financial year was a remarkable one for smelter and power teams. We marched past the milestone of 1 million tonne metal and we also delivered highest ever silver production. Ramp-up of our ancillary business was the icing on the cake. We didn’t have a good year in terms of safety, but we have galvanised the teams and their thought process and all right things have been done to ensure our operations remain safe.

C Chandru

Chief Executive Officer – IBU Smelter

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Reduction Achieved in Inventory

During FY 2022-23, we successfully reduced the work-in progress (WIP) stock in Pyro through various measures. By maximising the use of blue powder slurry, Imperial Smelting Furnace (ISF) dross and various lead refinery dross along with concentrate, and by controlling process parameters of sinter accordingly, we were able to bring down the WIP stock. ISF dross consumption was increased through modification in our in-house briquetting plant by revamping the existing equipment. Deployment of dedicated and skilled operators, and use of ‘Total Productive Maintenance’, has resulted in fewer breakdowns and increased the production of briquettes. By controlling the process parameters, we were able to maintain optimum lead level in kettle inventory, thus further reducing the in-process inventory.

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Achieved metal gain of 11 kt and EBITDA gain of ₹264 crore in FY 2022-23.

In FY 2022-23, the lead smelter at the Dariba Smelting Complex reported its highest ever annual production as a result of our smelter turnaround strategy. The smelter reported consistent production with better efficiency and better silver residue mud production in addition to improved feed to Pantnagar Silver Refinery.

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Waste to Wealth: Recovery from Residue

The Hindustan Zinc minor metal complex achieved its highest ever EBITDA in FY 2022-23 recording a 56% increase over last year. This outcome was attained due to the various concerted actions taken by the team. We decreased the batch cycle time of the rotary furnaces, increased throughput of the plant, and optimised the chemical consumption norms. Consequently, the highest ever Cu dross and purification waste cake treatments were done at the plant, with significant improvement in recoveries.

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Case Study
Breaking Production Records at ZSD

Our efforts to revamp cell house of Zinc Smelter Debari (ZSD) in FY 2021-22 were successful as we are witnessing the best production performance in the last 12 years. ZSD powered ahead to post annual cathode production of 89,806 MT in FY 2022-23, which is 20% more than the previous fiscal. The smelter improved its recovery from 91.4% to 94.3% in the last two years and witnessed a jump in current efficiency from 80.1% to 83.7% in FY 2022-23. The increase in production volume has resulted in a gain of US$ 10/MT.

Key Achievements
  • Best-ever performance of 89,806 MT annual cathode production in the past 12 years
  • With better current efficiency, rating and recovery as compared to last year, achieved total COP saving of ₹11 crore
  • Achieved 2% reduction in specific energy consumption as that of the target (17.17 GJ/MT against 17.6 GJ/MT)
  • Lowest ever specific water consumption norm, 16% reduction as compared to last year (8.34 m3/MT against the target of 10.29 m3/MT)
Case Study
Enabling 100% Green Power Sourcing at Pantnagar Metal Plant

In FY 2022-23, we achieved significant progress towards our goals of carbon neutrality and GHG reduction. We have replaced electric energy with 100% green power procurement from Uttarakhand Power Corporation Limited (UPCL) for conducting plant operations. We have also branded and labelled the product as a green finished good (FG) and moved one step closer to our goal of net-zero carbon emission by 2050.

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Hindustan Zinc’s Pantnagar Metal Plant has become the first unit of the Group to source 100% green power supply
Benefits
  • The shift to green power at the plant has reduced Hindustan Zinc’s overall carbon footprint by 34,128 tCO2e in FY 2022-23
  • Green power and labelling of FG product initiative will improve the brand value of our finished goods

CPP Performance Overview

At Hindustan Zinc, we have prioritised carbon neutrality and reduction in greenhouse gas (GHG) emissions as the key goals of our power business. We have made further investments in green initiatives at our thermal plants during FY 2022-23, while continuing our efforts to enhance operational excellence. With a keen focus on advancing on our sustainability journey, we have successfully achieved multiple milestones as we powered ahead towards ‘greener and cleaner’ operations.

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Our Vision
To supply reliable, efficient, and sustainable power for Hindustan Zinc with zero harm and at lowest cost



Milestone Achievements in our Power Capacities
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Renewable Power

314.07 MW

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Waste Heat Recovery Boiler (WHRB)

40.67 MW

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Captive Thermal Power

505.50 MW

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Total Power Capacity

860.24 MW


Progressing on our Green Journey
  • 200 MW Dariba renewable energy round the clock (RERTC) power delivery agreement (PDA) signed and project under execution
  • 250 MW Chanderiya RERTC PDA signed
  • Biomass consumed as replacement for coal, resulted in reduction of 89,896 tCO2 emission
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Solar Power

Gross Units Produced in FY 2022-23 for Captive Consumption

76.16 mn



Captive Solar Power

40.57 MW


Gross Units Produced in FY 2022-23

227.89 mn

Waste heat recovery plants are registered with Rajasthan Renewable Energy Corporation as a source of renewable energy


Captive WHRB

40.67 MW

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Waste Heat Energy
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Wind Power

Gross Units Produced in FY 2022-23

409.26 mn

Wind energy plants are based in five states, with long-term power purchase agreements with distribution companies


Wind Power IPP

273.50 MW


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With focussed efforts and initiatives in expanding our green footprint, we have successfully avoided 8.66 lakh tonnes of CO2 emissions during FY 2022-23, as against 6.13 lakh tonnes in FY 2021-22.

Towards Net-Zero

We have achieved new milestones on our journey towards achieving our goal of net-zero by 2050 or sooner. Our key initiatives in this direction during FY 2022-23 included:

  • Turbine revamping with better energy efficiency
  • Electrostatic precipitator upgraded in two units for increasing indigenous coal consumption (carbon emission reduction in Scope 3)

Future Roadmap
  • Revamping of 4.3 MW backpressure turbine in Dariba
  • Commissioning of 8.6 MW WHRB at Fumer project
  • Execution of De-NOx system at Chanderiya
  • Enhancement of Kayad mines solar plant

Touching New Vistas in our Conventional Power Metrics

During FY 2022-23, we scaled new vistas of performance excellence despite the challenges posed by high coal costs.


Best Specific Coal Consumption (SCC) Achieved

425 gm/kWh


Best-Ever Generation by WHRB Steam Turbine Generator (STG)

227.89 mn units


Biomass Consumption @6,000 Gross Calorific Value (GCV)

39,224 MT

Case Study
Boosting Indian Coal Consumption in Blend by 20%

The Hindustan Zinc power plant electrostatic precipitator (ESP) was originally designed by the original equipment manufacturer (OEM) to meet the suspended particulate matter (SPM) emission norms of 50 mg/Nm3, with the boiler design coal having 12% ash content. We decided to enhance the percentage of Indian coal in the blend from the existing 35% to 55% on 6,000 GCV (40% ash in blend) to meet the same emission norms and standards.

Intervention

After discussion with various OEMs, we undertook internal modification of the ESP, along with replacement of the existing single-phase transformer with the COROMAX transformer.

Outcome

Our internal operation excellence initiatives helped us to run the plant with blended coal (imported + Indian), with ash content up to 21%.



Thermal Power Generation at our 6 Power Plants in FY 2022-23

During the year, Hindustan Zinc CPP generated 2,996 mn units of power.

Chanderiya

64.18

8.0

419


Dariba

58.83

9.56

431


Zawar

63.58

8.51

432


Plant Load Factor (PLF) (%)

Auxiliary Power Consumption (APC)

SCC (gms/kWh)


Strengthening our Safety Proposition
  • Elimination of man-machine interaction during coal sampling and unloading at Zawar
  • In-house pilot project – successful implementation of coal pipe hammering machines system to strengthen CPP safety
  • Pilot project on bottom ash auto alignment scrapper system completed to reduce man-machine interaction

Enhancing Operational Efficiencies
  • Successfully completed performance guarantee test for turbine revamping project
  • Pilot project on ESP upgradation project stabilized
  • Auger sampling commissioning completed at Chanderiya and Dariba
  • Upgradation of programmable logic controller (PLC) at Chanderiya and Zawar

Augmenting Cost Efficiencies
  • Cost savings achieved through ‘cash conservation and cost reduction programme’ including the benefits accrued via strategic power purchase
  • 10% inventory reduction achieved
  • Coal blend optimised by utilising low-cost coal, like domestic and off-spec coal, to reduce the cost of generation amid high volatility in coal prices in the international market
  • Highest ever biomass consumption achieved across the Group
Case Study
Improving Turbine Efficiency to Reduce Carbon Emission

High turbine heat leads to an increase in carbon emission, as well as the cost of generation. We decided to cut down the carbon emission by 156,691 tCO2 by improving the turbine heat rate.

Intervention

We collaborated with various OEMs to modify the turbine blades and internals at all our power plants.

Outcome

We achieved the designed heat rate, as well as reduction in carbon footprint, by reducing internal leakages and enhancing the internal efficiency of the turbine.



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New Milestone Awards

Gujarat site awarded ‘Best Performing Windfarm’ by Indian Wind Power Association

Gold award in Quality Circle Forum of India, Rajsamand chapter in California Compost Quality Council (CCQC) 2022

Global leadership recognition for Hind Zinc School, Chittorgarh by the Indian Green Building Council (IGBC); school is the top scorer among the two ‘Platinum-Certified’ Green Schools in Rajasthan

Received Platinum Award under ‘Safety Excellence’, ‘Energy Efficiency’, ‘Best Practices for Industrial Water Management’ in Fame Excellence Awards 2022

Received ‘Efficient Fly Ash Management’ award for Chanderiya and Dariba at Mission Energy Foundation Award 2023

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