SMELTERS AND CAPTIVE POWER PLANTS (CPPs)

Driving Sustainable Growth through Steadfast Performance

PERFORMANCE SNAPSHOT

Production during FY 2023-24

817.1 kt

Zinc

216.0 kt

Lead

745.8 MT

Silver

 Aerial view of the Hindustan Zinc plant showing its expansive facilities and greenery.

TRANSFORMING MINE TO METAL, INNOVATIVELY!

At Hindustan Zinc, we innovatively leverage advanced technologies and modern tools at our smelters to seamlessly produce high-quality zinc, lead and silver from the zinc and lead concentrates received from our captive mines. The smelters are self-sufficient in power supply, with our in-house captive power plants (CPPs) catering to their power requirements. A variety of by-products are produced during the smelting process, and these are either sold or consumed in the course of the operations.

Flowchart depicting the pyro metallurgy route for zinc and lead concentrate, and the hydro metallurgy route for zinc concentrate. The processes include sintering, imperial smelting, metal refining, Ausmelt, SKS furnace, blast furnace, fuming furnace, electro refining, roasting, leaching, purification, electro winning, and melting and casting.

HARNESSING TECHNOLOGY TO DRIVE PRODUCTION

Hydrometallurgy for zinc production

A combination of roasting, leaching and purification, along with electrolysis and melting & casting, is used to process the zinc concentrate received from the mines. This enables us to produce 99.99% pure zinc, including HZDA (zinc-aluminium alloy), continuous galvanising grade (CGG), 1 tonne jumbo and high grade, along with by-products such as sulphuric acid.

Pyrometallurgy for zinc and lead production

We use sinter, imperial smelting furnace (ISF), lead refinery, zinc refinery and silver refinery to produce prime western (PW) zinc of 98.65%, special high grade (SHG) of 99.995% and lead of 99.99% purity. During the process, high grade metal, containing 25-30% silver, is produced and is sent to the silver refinery to make silver of 99.99% purity.

Top submerged lance technology in Ausmelt plant for lead production

This cutting-edge technology directly consumes the lead concentrate to produce lead bullion, having lead content of over 96.5%. The bullion is further processed in the lead refinery to produce 99.99% pure lead.

SKS technology for lead production

SKS, blast furnace (BF) and lead electrowinning process (LEP) technologies are blended to produce 99.99% pure lead. The LEP process causes 25-27% silver to be left over in the refinery mud, which is processed in the silver refinery to produce silver of 99.99% purity.

Smelter team delivered another record-breaking performance this year with silver being the feather on the cap. The transition to the third largest silver producer globally speaks volumes of our resilience and strategic brilliance. Executing fumer commissioning with online support and taking Debari a notch up in volumes are noteworthy achievements. Maximising indigenous coal helped us reduce the cost drastically. We have also embarked on a lot of research initiatives to convert our residues to value generating raw materials and products. The upcoming two years will bring in a turnaround for the organisation on this front. With our ESG focus, digital approach and debottlenecking projects kicking in, the year ahead looks even more promising.

C Chandru
CEO Smelters
Flowchart depicting the pyro metallurgy route for zinc and lead concentrate, and the hydro metallurgy route for zinc concentrate. The processes include sintering, imperial smelting, metal refining, Ausmelt, SKS furnace, blast furnace, fuming furnace, electro refining, roasting, leaching, purification, electro winning, and melting and casting.
SUSTAINED OPERATIONAL PERFORMANCE

Continuing with our focussed initiatives to boost efficiencies and sustainability at our smelters, we maintained our production guidance to cross the bar of more than ‘1 million tonne’ refined metal production, for second time in a row, during FY 2023-24. Some of the major initiatives across the processing units that led to this exceptional feat were:

Fumer integration: 1% increment in metal recovery in Hydrometallurgy plant

Debottlenecking of cell house through increment in amperage, resulting in capacity enhancement from 88 kt to 92 kt

Major overhauling in roaster-3 plant to enhance the throughput from 36 tonnes per hour to 40 tonnes per hour

Oxygen enrichment in all roaster plants to achieve a throughput of 40 tonnes per hour

Up to 37% indigenous coal consumption in CPP units to reduce the cost of power generation

Increased plant load factor (PLF) from 63% to 85% by improving plant efficiency and increasing indigenous coal consumption

CASE STUDY

Boosting Metal Recovery in Hydrometallurgy Plant through Fumer Integration

The commissioning of a Fumer facility paved the way for enhanced metal recovery in the Hydrometallurgy plant during the year. This achievement marked a milestone in the operational journey of Hindustan Zinc, which continued to forge ahead on the path of enhanced performance and sustainable growth.

Key features

  • The Fumer plant has a 160 kt leach residue treatment system
  • It is designed to recover lead, zinc and silver, which were earlier going into jarofix, with current reduction in the quantity of jarofix of 20%
  • It will ensure power generation from waste heat recovery, and reduce the consumption of cement and lime
  • The plant helps in the recovery of metal present in the residue. The slag produced in the process is used in the cement industry

Key outcomes

  • Zinc recovery in the zinc calcine to zinc ingot process went up to 97.5% (from the earlier 96.5%)
  • Additional silver recovery of 30+ MT per annum
An infographic showing power generation capacities and gross units produced in various sources for FY 2023-24. Solar power has a capacity of 40.70 MW and produced 73.90 million units. Wind power has a capacity of 273.50 MW and produced 409.60 million units. Captive thermal power has a capacity of 514.00 MW and produced 3,989.01 million units. Waste heat recovery boiler has a capacity of 48.46 MW and produced 212.78 million units. The center of the image highlights 'Power Generation in CPPs During FY 2023-24'.

OPTIMAL COST PERFORMANCE

The cost of production (COP) for zinc and lead has been on the upswing for the last three years. Our strategic efforts to boost the production and operational efficiency in our smelter business, however, helped us lower the COP by c.100 US$/MT during FY 2023-24. Listed below are the major initiatives undertaken to optimise the cost of production, as well as the untapped potential that still exists for further optimisation.

  • Cost of generation in CPP plant:
  • Up to 37% indigenous coal consumption in all CPP units, achieving a lower generation cost
  • Harnessed the opportunity triggered by excess power and justifiable sale rate to sell power on the Indian Energy Exchange (IEX)

Key developments & their impact on COP

  • Shutdown - Implementation of measures/techniques to minimise shutdown costs, resulting in cost savings of ₹ 22 crore
  • Contract cost - Achieved lower than anticipated contract cost, positively impacting our financial performance and reinforcing our commitment to efficient resource management, resulting in cost savings of ₹ 38 crore
  • Administration & manpower - Streamlining of administrative processes and deployment of digital solutions for optimising workflow and efficient resource management, enabling cost savings of ₹ 18 crore in admin costs
  • Additional ₹ 69 crore saved through scrap & residue sale and other income

Improvement areas

  • Cost of generation - Higher cost of coal and other input commodities have impacted the cost of generation, and we are continuously exploring innovative measures to lower the same
  • Stores and consumables - We have optimised the cost of consumables by reducing the consumption norms of major consumables (including soda ash, sodium sulphate, lime, etc.). However, the cost was impacted by unanticipated increase in the prices of consumables
  • Lower realisation of sulphuric acid, owing to the softened demand

FOCUSSED ON SAFETY EXCELLENCE

As an industry frontrunner in pursuance of the zero harm goal, we, at Hindustan Zinc, strive continuously to create a safe workplace. We remain steadfastly dedicated to safety protocols and sustained vigilance to improve the safety of the work environment. Embracing safety excellence, we proactively identify and mitigate potential hazards, implement robust safety measures, and empower our workforce with the knowledge and tools necessary to prioritise safety above all else.

Critical safety initiatives of FY 2023-24

  • Implemented an alert system at roaster 3 raw material handling (RMH) section at Zinc Smelter Debari (ZSD) using radio frequency identification (RFID) technology to mitigate the risk of man-machine interaction hazard during concentrate unloading and loading
  • Implemented an online hydrogen monitoring system at Dariba Smelting Complex using sensors that offer highly selective and instantaneous responses to hydrogen to prevent fire occurrences from igniting flammable hydrogen gas in the leaching area
  • Residual life assessment (RLA) study phase 1 completed with health assessment carried out for 17 sulphuric acid storage tanks by a competent party and the safe operating limit is being set as per the RLA and fitness for service (FFS) study to prevent any undesirable event
  • Level 3 mock drill on propane gas and SO2 leakage was conducted at Chanderiya Lead-Zinc Smelter (CLZS) for evaluating and strengthening our emergency response procedure, reaffirming our commitment towards the safety-first culture
  • ZSD introduced an advanced cardiac lifesaving (ACLS) ambulance and a free eye camp was conducted for 85 truck drivers at CLZS, strengthening our vision towards health care

Zero

Fatalities across Hindustan Zinc

FORGING AHEAD TOWARDS NET ZERO

Innovative interventions and initiatives at all locations continued to propel our journey towards net zero during the year.

0.4 mn tCO2e

Cumulative GHG emission savings at all locations in FY 2023-24

0.5 mn tCO2e

Cumulative GHG emission savings target for FY 2024-25

PROJECTS / INITIATIVES

Zero liquid discharge (ZLD) across smelters

100% green power at Pantnagar metal plant

Biomass consumption in captive power plant, along with coal

Cleaner fuel vehicles and 10 electric vehicles introduced for inter-unit and finished goods movement

Fumer integration in Hydrometallurgy plant

IMPACT

6,800 KLD water saving

30,000 tCO2e GHG emission savings

76,035 tCO2e GHG emission savings

20 kgCO2e GHG emission savings on 242 kilometre journey

20% reduction in jarofix production

RAISING THE BAR WITH INNOVATION, AUTOMATION & DIGITALISATION!

As a part of our efforts to raise the performance bar of our smelters business, we make continuous investments in innovation, automation and digitalisation to enhance productivity and efficiencies. It is our endeavour to build a data-driven organisation by using advanced technologies that enable real-time data analysis. Our focus areas in this regard include:

VOLUME

Increasing the availability of ISF plant by 0.25 days/month through computer-based sinter belt health monitoring, thus increasing zinc production by 100 MT/month

COST

consumption optimisation at leaching & purification plant with annual potential saving of ₹ 4.5 crore

ENVIRONMENT

Real-time monitoring of operations across smelters, ensuring that they stay within the limits specified by CTO (consent to operate)

SAFETY

Ladle operation monitoring and interlocking with electric overhead travelling (EOT) via computer vision in lead refinery to mitigate the risk of hot metal spillage

GOVERNANCE

100% auto booking in SAP for all the products

QUALITY

Finished goods ingot surface quality monitoring through computer vision

FORGING RESPONSIBLY AHEAD

In line with our strategic focus, we shall continue to invest in scaling our performance through investments in the enhancement of operational efficiencies and digitalisation of our systems and processes. At the same time, we shall continue to drive our ESG goals to deliver sustainable growth and value creation. Some of our major plans moving forward include:

An icon showing two interlocking gears with arrows indicating rotation. The gears are outlined in gradient colors, symbolizing mechanical processes and connectivity

Operations

  • 2 new Fumer plants integration to reduce Jarosite and enhance metal recovery by 1% in Hydrometallurgy plant
  • Commissioning of 3 new sulphuric acid tanks
  • Installation of new hot ESP for Ausmelt
  • Installation of PGCT and oxygen plant in sinter
An icon showing a gear with several nodes connected to it by lines. The gear is blue, and the lines and nodes are in gradient colors, symbolizing connectivity and technology.

Digitalisation

  • AI-enabled boiler bundle failure prediction in all roasters
  • Steam generation efficiency improvement, using AI/ML to reduce specific coal consumption (SCC)
  • Automated railway crossing gate at CLZS
An icon showing a leaf inside a globe outline. The leaf is green and blue, symbolizing environmental sustainability and global ecology.

ESG

  • Receiving of 450 MW renewable energy round the clock (RE-RTC) (reducing 2.7 MtCO2e carbon emissions)
  • Tail gas treatment (TGT) plants across all roasters to reduce SOx emissions
  • Reduction in freshwater consumption by maximising usage of sewage treatment plant (STP) water

CASE STUDY

100% Indigenous Coal Consumption in CPP

Our power plants are designed to run at 100% imported high gross calorific value (GCV) coal (6,000 Kcal/kg) but usage of imported coal has led to high cost of generation. To keep the generation cost in check, we initiated the use of Indian coal. Suitable design modifications were made to enable the shift to indigenous coal usage. These amendments helped to mitigate issues like particulate matter emission, availability of Indian coal, among others.

Key features

  • ESP upgradation through replacement of existing single-phase transformer with 3-phase transformer in 2 units (Chanderiya and Dariba)
  • Commissioning of Bhopalsagar railway siding to increase coal availability in Dariba
  • Improvement in the availability of Indian coal to meet the unit requirements

Key outcomes

  • One unit each at Chanderiya and Dariba can now run at 100% Indian coal, enabling a reduction in the cost of generation, which was high earlier due to coal import
  • Up to 37% blending achieved across the CPP units annually, with the highest blending monthly rate of 45%, from the earlier best achieved of 26% before ESP upgradation
  • Lowest cost of generation achieved in CLZS unit in two years
  • ₹ 73 crore benefit earned during FY 2023-24 due to increased consumption of Indian coal

Moving forward, we plan to increase the Indian coal consumption and sustain the same in other units too. We shall replicate the upgradation processes in the other units and also scale the other auxiliary system.

The transparent culture has been key to my comprehensive understanding of the business, enhanced by the multifaceted learning environment. Moving forward, my mission is to align all efforts toward realising our business goals, ensuring balanced and fulfilling progression for my team, guided by the organisation’s vision of sustainable growth.

Anamika Jha SBU Director, Pantnagar Metal Plant

Embracing the mantra “Stay fearless and be humble”, I’ve fostered a supportive environment, seeking guidance from seniors and mentors to overcome challenges. Hindustan Zinc provides platforms for personal development and recognition, like the V-Lead initiative, empowering women leaders to contribute to ambitious goals, including producing 1.2 Mt of metal at a US$ 1,000 cost with zero harm.

Tanya Singh Dy. Plant Manager - L&P I, U-II, CLZS
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