Hindustan Zinc

Hindustan Zinc Limited (HZL) is an integrated mining and resources producer of zinc, lead, silver and cadmium. It is a subsidiary of Vedanta Resources PLC. HZL is the world's second largest zinc producer. Its FY2015 revenues were Rs. 147.9 billion.^[2]

History

Hindustan Zinc Limited was incorporated from the erstwhile Metal Corporation of India on 10 January 1966 as a Public Sector Undertaking.

In 2001 as part of the Government's disinvestment program of loss making PSUs, the company was put up for sale.^[3]

In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for acquisition of shares of the company; consequent to the disinvestment of Government of India's (GOI) stake of 26% including management control to SOVL and acquired additional 20% of shares from public, pursuant to the SEBI Regulations 1997. In August 2003, SOVL acquired additional shares to the extent of 18.92% of the paid up capital from GOI in exercise of call option clause in the share holder's agreement between GOI and SOVL.

With the above additional acquisition, SOVL's stake in the company has gone up to 64.92%. Thus GOI's stake in the company now stands at 29.54%. SOVL was merged with Sterlite Industries India Ltd in April 2011.^[4] Sterlite Industries merged with Sesa Goa Ltd to form Sesa Sterlite Limited in August 2013. Sesa Sterlite was renamed to Vedanta Limited in April 2015.^[5] Hindustan Zinc is now a direct subsidiary of Vedanta Limited.

Operations

Mining

HZL operates the world's third largest open-pit mine, and World's largest Zinc Mine in Rampura Agucha, Rajasthan. Other mines with HZL are located in Sindesar Khurd, Rajpura Dariba, Kayar and Zawar, all in Rajasthan.^[6]

HZL is one of the lowest cost zinc producers in the World.^[7]

Smelting

HZL operates Zinc and Lead smelters and refineries at Chanderiya (Chittorgarh), Debari (Udaipur) & Dariba (Rajsamand) in Rajasthan with total zinc and lead production capacity of 1.0 million tonnes. A smelting facility was established at Pantnagar in Uttarakhand. It was initially intended to serve as a smelting facility for Silver production, but later Zinc and Lead melting and casting plants were also established here. The total metal production was 880,000 tonnes for year 2014-2015.^[8] It also has zinc smelter in Vizag, Andhra Pradesh, where operations have been suspended since February 2012.^[9]

References