S1MAINTAINING A PORTFOLIO OF MINES WITH LONG LIFE
Continuous mineral resource addition and upgradation of the ore reserves plays a vital role in efficient operations and in ensuring the sustainability of mining operations. Hindustan Zinc’s exploration objective is to add mineral resource and upgrade the resources to reserves by intensifying exploration drilling in the existing licence areas, thereby replenishing every tonne of the mined metal, leading to 25+ years of mine life. Technology adoption and innovations play a key role in enhancing our exploration success. Use of advanced geophysical drone surveys and 3D deposit modelling supported by machine learning is helping us to identify new target areas with greater precision and improved efficiency. The deposits are open in depth, supporting aggressive approach to drilling and expanding the mineral resource base of the Company in the next 12 months.
FY 2023-24 Update
- Total ore reserves at the end of FY 2023-24 stand at 175.1 Mt (net of depletion of FY 2023-24 production of 16.5 Mt) as against 173.5 Mt at the end of FY 2022-23 as a result of sustained focus on resource to reserve conversion; total exclusive mineral resource stood at 281.2 Mt
- Combined R&R estimate stood at 456.3 Mt, containing 30.8 Mt of zinc-lead metal and 854.3 million ounces of silver
- Overall mine life continues to be more than 25 years
- Forayed into strategic mineral exploration with the formation of a new subsidiary ‘Hindmetal Exploration Services Pvt Ltd.’
Way forward
FY 2024-25
- Target generation through drill testing across all our mines, with an exploration plan to enhance the mineral resource by 20 Mt ore
- Acquisition of new base metal (zinc plus lead) and critical minerals mining blocks by participating in mining auction blocks to ensure mineral security for the Company
- Ore reserves upgradation for sustained mine production for the next 10 years
- Usage of AI and ML algorithms to analyse Hindustan Zinc’s geological, geochemical and geophysical data, enabling quicker new target identification and evaluation
FY 2029-30
- Retain existing mining leases in Hindustan Zinc’s portfolio, while acquiring new mining leases through mineral auction regime
- Attain R&R metal of c.40 Mt in the Company’s portfolio
FY 2025-26
- Diversify portfolio by adding other commodities, e.g., critical minerals including Lithium, Rare Earth Elements (REE), Copper, Gold, Platinum Group Elements (PGEs), to meet the nation’s future demand
- Continue to identify and generate potential exploration target areas through advanced geophysical surveys, and application of artificial intelligence (AI) and machine learning (ML) in 3D deposit modelling and simulations
- Enhancement of the mineral resource by 40 Mt ore with contained metal of 2.0 Mt, and upgrade ore reserves to 42 Mt, adding up to a total R&R of 500+ Mt with c.35 Mt metal
456.3 Mt
Total R&R
S2 EXPANSION OF CAPACITIES
We continue to invest in the organic and inorganic expansion of our capacities along with operational excellence. These investments are aligned with our vision to be the world’s largest and most admired zinc, lead and silver company. This strategy drives our enhanced performance while enabling us to maintain over 25 years of mine life. We sustained our performance excellence during FY 2023-24, marked by 1,033 kt refined metal production, and with supporting MIC flow, our smelters are geared to achieve 1,075-1,100 kt of refined metal in FY 2024-25.
FY 2023-24 Update
- Achieved highest-ever mined metal production of 1,079 kt and refined metal production of 1,033 kt
- Maximised silver production at a historical high of 746 MT, by operating pyro operations on lead mode for a longer duration; emerged as the 3rd largest silver producer in the world, according to the World Silver Survey 2024 by The Silver Institute
- Commissioned a new mill at Rajpura Dariba Complex, enhancing the ore treatment capacity from 0.9 MTPA to 1.1 MTPA
- Successfully completed major overhauling of Roaster 3 and pyro plant, and indigenously commissioned the fumer plant at Chanderiya Lead-Zinc Smelter
- Obtained mine plan approval from Indian Bureau of Mines to commence mining activities at Bamnia Kalan Mine
- Introduced shaft partition at Sindesar Khurd mine to increase the shaft hoisting from 2.6 Mtpa in FY 2022-23 to 3.1 Mtpa in FY 2023-24
- Total mine development of 101 km in FY 2023-24, with Rampura Agucha Mines and Zawar Mines achieving their highest-ever mined metal production in FY 2023-24
- During the year, as a result of operational excellence parameters and technology & innovation, Balaria Mine recovery improved from 45% to 95%, and external dilution reduced from 120% to 8%; overall dilution improved from 19.4% in FY 2022-23 to 18.4% in FY 2023-24
Way forward
FY 2024-25
- Further ramp-up of underground mines towards their designed capacity of 1.2 Mtpa
- Commissioning of combined paste-fill and dry tailing plant at Rajpura Dariba, increasing the ore production from 1.5 Mtpa to 2 Mtpa
- Commissioning of new beneficiation plant at Rajpura Dariba mines, to increase the treatment capacity from 1.1 Mtpa to 1.5 Mtpa
- Hooking up hydraulic fill plant with Mill 2 at Zawar, to expedite filling at Mochia & Balaria mines, and improve ore recovery
- New portal commencement at Zawarmala to enhance production up to 2 Mtpa
- Commissioning of Roaster-6 at Debari
FY 2029-30
- Ramp-up of underground mines to 1.5 Mtpa capacity
- Look for new mining leases and advocacy for opening new mining sites
- Addition of one more smelter to take the overall smelting capacity to 1.5 Mtpa
- Scaling the silver production to a target capacity of 1,000 MT
- New fumer plants integration to reduce jarosite and enhance metal recovery by 1% in Hydrometallurgy plant
FY 2025-26
- Ramp-up of underground mines to reach 1.25 Mtpa capacity
- Study on alternate access to the portal at Rampura Agucha mine
- Commissioning of vertical conveyor in Sindesar Khurd mine to mine high-grade shaft pillar area
- Completion of Mill 3 at Zawar to increase beneficiation capacity
- Erection of new leaching and cell house in Debari with a capacity of 210 ktpa. Set up 510 ktpa fertiliser plant in Chanderiya
1,079 kt
Mined Metal Production
1,033 kt
Refined Metal Production
S3 STRENGTHENING COST LEADERSHIP
Cost optimisation is a key pivot of Hindustan Zinc’s responsible future growth strategy. We have maintained our position of being one of the lowest-cost producers of zinc globally. We also remain in the 1st decile of the global zinc mining cost curve. Continual augmentation of the volumes, improvement in grades, innovation, automation & digitalisation are helping us enhance operational efficiencies to boost our cost leadership continuingly.
FY 2023-24 Update
- Achieved sustained cost reduction for 5 consecutive quarters and the lowest cost in last 3 years through continued focus on operational efficiencies, agile input commodity sourcing and transforming operations through automation and digitalisation; led to total savings of approximately US$ 140 per tonne during the year
- Operated pyro plant on lead mode for 6 months, reducing zinc cost of production (COP) and improving lead and silver production
- Smelter recovery improvement through various initiatives like fumer plant commissioning, etc.
- Implemented flexible operations by dynamically making decisions, basis external factors like power offtake from external sources at cheaper and economical rates as required, thereby controlling power costs
- 40% reduction in cost of power generation by improving efficiency and percentage of Indian coal in the blend
- Achieved lowest ever specific coal consumption of 422 gm/kWh at our captive power plants
- Undertook various alternate fuels innovation, thereby pushing operational efficiencies
- Focussed on reducing equipment cost, increasing productivity, improving utilisation of machines and rationalising deployment of machines underground
- Treatment of raw zinc oxide (RZO) in RKD circuit (component of overall fumer project)
- Enhanced minor metal recovery by 56% over previous year, resulting in higher cost credits
Way forward
FY 2024-25
- Maintain cost of production between US$ 1,050 - US$ 1,100 per tonne, through efficient ore hauling, higher volume and grades, and higher productivity with ongoing efforts in automation and digitalisation
- Switching to RE power from CPP (partially at DSC zinc smelter); increase in Indian coal consumption in blend to >40% for power production
- Evaluating opportunities to drive higher volumes and increase market share
- Close tracking of geopolitical events which may lead to cost impacts, and proactively taking steps to mitigate any negative effects that may arise
- Engineering of Dariba lead cellhouse to reduce cost while increasing efficiency and recovery
FY 2029-30
- Maintain cost of production below US$ 1,000 per tonne, through proactive cost saving measures, increased production, and continued operational efficiencies
FY 2025-26
- Maintain cost of production at a low level through efficient ore hauling, higher volume and grades, and higher productivity through ongoing efforts in automation and digitalisation
- Complete commissioning of 450 MW RE power at Dariba and Chanderiya, catering to c.50% of the Company’s total power requirements; the agreement is at a fixed rate for the next 25 years, thereby insulating the Company from interest rate fluctuations, providing better cost visibility and predictability
S4 EXPANSION OF PRODUCT PORTFOLIO THROUGH CUSTOMER-CENTRICITY
We are cognisant of our responsibility to the evolving needs of customers, and continue to expand our product suite to cater to the same. We continue to innovatively expand our Value Added Product (VAP) portfolio in line with this strategy. We also invest in nurturing our Human Capital to ensure that our employees are aligned to the needs of the customers, and are responsive to the same.
FY 2023-24 Update
- Adopted the subsidiary route to ensure focussed and quality production of VAPs through the commissioning of 30 ktpa alloy plant
- Achieved highest-ever annual VAP sale of 161 kt, along with development of 3 new CGG products
- Achieved highest-ever VAP sales, increasing the share of value-added products to 20% from 15% in FY 2022-23
- Work is in progress for HZFPL, with technical partner onboarded on an engineering, procurement, and construction (EPC) basis
Way forward
FY 2024-25
- Full ramp-up of the alloy plant to produce value-added products at its designed capacity of 30 ktpa
- Development of new products through downstream applications like zinc dust
- Focussed approach to increase share of value-added products from 20% to 23%
FY 2029-30
- Strategically increase share of value-added products to 50%
FY 2025-26
- Commissioning of the fertiliser plant in Chanderiya, enabling better utilisation of sulphuric acid generated in operations through production of fertilisers, catering to the demand in the Indian market and delivering international quality products, while commanding a premium in the domestic market
- Focus on innovation of new products and increased penetration of zinc alloys like ZAM and other zinc & lead specialty alloys
- Focussed approach to increase share of value-added products from 23% to 27%
S5 PROGRESSING TOWARDS A SUSTAINABLE FUTURE
We believe sustainability to be a key imperative of business growth and remain committed to reducing our carbon footprint. Our Sustainable Development Goals 2025 are aligned with this commitment. We are continuously making strategic investments to promote sustainable development through initiatives aimed at making Hindustan Zinc a nature positive company. Promotion of diversity and inclusion, fostering a circular economy are other important areas of our sustainability focus. We are also continually working to integrate climate change into our financial strategy to align the latter to the needs of sustainable growth. We continue to strengthen our voluntary ESG-related disclosures in line with the global best practices. Our focus remains on responsible sourcing, enhanced efficiencies, increased use of renewable energy, and promotion of safety in our operations.
FY 2023-24 Update
- Accelerated the construction of infrastructure, ensuring the first flow of RE power in May 2024 as a part of the 450 MW RE power delivery agreement
- Indigenous commissioning of fumer plant at CLZS for minimisation of jarosite generation and recovery of additional silver from zinc residue
- Utilised 51,369 MT of biomass for power generation, thereby reducing the carbon footprint through our captive thermal power plants
- Waste management through utilisation of jarosite in cement industry and jarofix in road construction
- Partner locked-in for treatment of jarofix and tailings to recover metal and convert residue for gainful utilisation; technical evaluation and pre-feasibility analysis ongoing
- Commissioned phase 1 of 4,000 KLD zero liquid discharge plant in Zawar, facilitating water recovery and ensuring reduction in fresh-water dependency
- Deployed India’s first battery electric vehicles (BEVs) in UG mining at SKM, 3 vehicles deployed till date
- Deployed 41 LNG trucks across locations for interunit and finished goods transfer, as a part of our commitment to deploy 180 LNG trucks in partnership with GreenLine
- Added 10 EV trucks to our logistics for inter unit transportation, each boasting a capacity of 55 MT, in partnership with Inland EV Green Services
- Commissioned dry tailing plant at RDM
- Implementation of schedule 1 of conservation plan in progress at CLZS, RDM, SKM & ZM
- Transition of wet to dry tailing disposal facility at Rampura Agucha
- Installation of tail gas treatment plant at Chanderiya and Debari
- Construction and commissioning of plant for residual metal recovery from waste streams, including tailings and jarofix
Way forward
FY 2024-25
- Commissioning of Phase 1 of the 450 MW RE power delivery agreement and utilisation for operations at Dariba plant
- Migration to 100% mechanised charging at Zawar, leading to improved safety, faster charging, and increased pull per blast
- Construction and commissioning of new zero liquid discharge (ZLD) plant at Rampura Agucha
- Complete evaluation of alternate technologies for jarosite/jarofix and initiate capital equipment process for tailings and jarofix project
- Achieve all the Sustainable Development Goals (SDGs) 2025, and set next phase of SDGs
- Selection of technology, detailed engineering, and ordering for additional fumer plant at Dariba and Chanderiya, to avoid generation of jarosite
- Deployment of 180 LNG vehicles for transportation of finished goods and interunit movement
- Enhancement in effluent treatment plant (ETP)/ZLD capacity and secure low-quality water for Chanderiya location
- Permanent capping of jarofix yard phase II (22 hectare) through mycorrhiza technology
- Ordering for project of modernisation of Debari Zinc Smelter to improve metal recovery and improve energy efficiency
FY 2025-26
- Complete commissioning of 450 MW RE power supply and its utilisation in Dariba and Chanderiya plants
- Transition of wet to dry tailing disposal facility at Rampura Agucha
- Installation of tail gas treatment plant at Chanderiya and Debari
- Construction and commissioning of plant for residual metal recovery from waste streams, including tailings and jarofix
FY 2029-30
- Accelerate mitigation and adaptation measures, and reduction of scope 1 and 2 emissions by 50% and scope 3 emissions by 25% by 2030
- Aiming to achieve water neutrality at watershed level for our operations by reducing freshwater consumption in water-scarce areas by 50%
- Aiming to achieve nearly zero waste to landfill by diverting all smelting process waste away from landfill through reuse, recycling and recovery
- Plan and strive to achieve no net loss of biodiversity at all mine sites through closure by applying mitigation hierarchy against a 2020 baseline
- Plan to achieve no gross deforestation in protected areas, and strive to achieve no net deforestation in operating sites by 2050 against the baseline of 2020
- Contribute to reach zero fatality and 100% elimination of high consequence work-related injuries
- Increasing the outreach to 11.68 mn beneficiaries through sustained CSR interventions - Enhancing the local economy through initiatives focussed on sustainable livelihood and women empowerment impacting 0.54 mn; improving the quality of life through education and healthcare focussed initiatives and model village impacting 11.14 mn lives
- Increase the gender diversity to 30% with enhanced focus on decision-making bodies and aiming to make the Company an inclusive and diverse workplace
- 100% active business partner evaluation on ESG & risk management, and transition to greener fuels for advancing in scope 3 emission reduction
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