HZL sees INR 8000 crore capacity expansion spend in 3 to 4 years.

Daily Pioneer reported that Vedanta Group firm Hindustan Zinc Limited, helped largely by expanding its existing mines and de bottlenecking them, aims to take its metal capacity from 1 million tonnes to 1.2 million tonnes in the next three to four years.

Mr. Sunil Duggal deputy CEO of HZL said that HZL plans to spend INR 8,000 crore on the capacity expansion plan, mainly of two key metals in which it deals zinc and lead.

In addition to this, another INR 1,500 crore will be spent on three smelters of the company mainly on their de bottlenecking which will increase extraction of zinc from the ore and make them more efficient and profitable.

Producers of high quality of zinc and lead, HZL aims not only to expand its existing mines (it has four mines which consist of both zinc and lead reserves Rampura Agucha, Rajpura Dariba, Sindesar Khurd and Zawar all are located in Rajasthan), it is also on the look out for new mines.

Mr. Duggal, though did not elaborate on the acquisition plans regarding the mines, and stressed on the fact that focus will be more on decongesting (de bottlenecking) the existing mines, as it is by doing this that the company will be able to achieve its capacity expansion target.

STEELGURU