Hindustan Zinc Limited

Hindustan Zinc Limited (HZL) (NSE: HINDZINC, BSE: 500188) 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 FY2011 revenues were Rs. 108.91 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 BJP Government's anti-corruption drive, 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%.

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.^[4]

HZL is also the world's lowest cost zinc producer.^[5]

Smelting

HZL operates Zinc and Lead smelters and refineries at Chanderiya (Chittorgarh), Debari (Udaipur) & Dariba (Rajsamand) in Rajasthan, and at Vishakhapatnam in Andhra Pradesh.The total metal production was 840,000 tonnes for year 2010-2011.

References