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Hindustan Zinc LimitedWorlds largest integrated Zinc producerSeptember 2012
Cautionary Statement and DisclaimerThe views expressed here may contain information derived from publicly available source...
World Class Mining AssetsRajpura Dariba MineReserves 7.8 mtResources: 64.1 mtReserve Grade Zn: 3.6%Reserve Grade Pb: 2.0%O...
World Class Smelting and Power AssetsSamana - 88.8MWChanderiya Smelting ComplexZinc Smelter DebariPyrometallurgical Lead Z...
Resource Driven Growth Substantial Reserves & Resources base with 25+ years mine life Best-in-class assets and fully int...
Exceptional Track Record6HZL Corporate Presentation (September 2012)Reserves & Resources more than doubled (mt) Mined meta...
Near-term Priorities Mined metal (MIC) production close to capacity Lead and Silver throughput close to 185kt and 500t c...
Cost Leadership8HZL Corporate Presentation (September 2012)Low cost base supported by – Tier-I assets with high gradesand...
Growing Silver Portfolio Among the largest silver resources companies in the world. On track to become top 10 silver pro...
Positive Market Outlook Demand – supply gap expected to widen on supply shortfall and robust consumption growth Conseque...
Community EngagementFostering Self-Reliance through CommunityDevelopment Reaching to more than half a million people inRa...
Green Initiatives12Climate Change Management Leading wind power generator in India- ~274MW ofinstalled wind power Regist...
EXPLORATIONTerry BarclaySeptember 2012“Adding Value through discovery -using world’s best technology andexperts
Exploration Driving Growth Increasing Reserves and Resources at existing mines Large-scale exploration program with pan-...
Major Exploration Techniques15Exploration Presentation (September 2012)DRILLINGBrownfields – 45,000mGreenfields – 29,000mG...
16RAMPURA AGUCHA MINE
Overview17RAM Presentation (September 2012)Commissioned : 1991Location : 225 km north ofUdaipur (Rajasthan)Mining Lease Ar...
Consistent growth18RAM Presentation (September 2012) Major Focus Areas:− Focused exploration to enhancethe reserves & res...
Isometric view19 Development ore from underground project – 2HFY13 Commercial production from underground project – FY14...
20DARIBA SMELTING COMPLEX
Overview21DSC Presentation (September 2012)Dariba Smelting Complex- Hydro Zinc smelter – 210,000 tpa Lead smelter – 100,...
Zinc Smelter - Overview22DSC Presentation (September 2012) Technology-Hydro metallurgy(Roast, Leach & Electro-winning) T...
Lead Smelter - Overview23DSC Presentation (September 2012) Technology-SKS, Bottom blowing Technology Technology Supplier...
24SINDESAR KHURD MINE
Overview25Location : 82 km North-east of UdaipurAccess to mine : Through two Ramps(5.5m wide x5.0m height)(4.3m wide x3.0m...
Accelerated Growth26 Ore production capacity ramped-up to2.0mtpa from 0.3mtpa in 2006 Reserves & Resource base of 81.4mt...
Geotechnical Characteristics of Rock Mass27 Rock mass at Sindesar Khurd is of highstrength, has good rock mass qualityand...
LVS of Sindesar Khurd Mine28Sindesar Khurd Presentation (September 2012)
29THANK YOU
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Vedantaindiaoperationssitevisit zincindiahzlpresentation-26sep2012

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Vedanta India Operations site visit - Hindustan Zinc Ltd., zinc india presentation 26 sep 2012

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Vedantaindiaoperationssitevisit zincindiahzlpresentation-26sep2012

  1. 1. Hindustan Zinc LimitedWorlds largest integrated Zinc producerSeptember 2012
  2. 2. Cautionary Statement and DisclaimerThe views expressed here may contain information derived from publicly available sources that have not beenindependently verified.No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of thisinformation. Any forward looking information in this presentation including, without limitation, any tables, chartsand/or graphs, has been prepared on the basis of a number of assumptions which may prove to be incorrect. Thispresentation should not be relied upon as a recommendation or forecast by Hindustan Zinc Ltd (“HZL"). Pastperformance of HZL cannot be relied upon as a guide to future performance.This presentation contains forward-looking statements – that is, statements related to future, not past, events. Inthis context, forward-looking statements often address our expected future business and financial performance,and often contain words such as expects, anticipates, intends, plans, believes, seeks, or will. Forward–looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertaintiesarise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations ininterest and or exchange rates and metal prices; from future integration of acquired businesses; and fromnumerous other matters of national, regional and global scale, including those of a environmental, climatic, natural,political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual futureresults to be materially different that those expressed in our forward-looking statements. We do not undertake toupdate our forward-looking statements.This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation ofan offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in HZL or anyother invitation or inducement to engage in investment activities, nor shall this presentation (or any part of it) northe fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.2HZL Corporate Presentation (September 2012)
  3. 3. World Class Mining AssetsRajpura Dariba MineReserves 7.8 mtResources: 64.1 mtReserve Grade Zn: 3.6%Reserve Grade Pb: 2.0%Ore Production Capacity:1.2mtpaCPP: 80MWZawar Mining ComplexRampura Agucha MineReserves: 69.3mtResources: 41.1mtReserve Grade Zn: 13.7%Reserve Grade Pb: 1.9%Ore Production Capacity:6.15mtpaReserves: 8.8mtResources: 43.5mtReserve Grade Zn: 6.3%Reserve Grade Pb: 1.7%Ore Production Capacity:0.90mtpaSindesar Khurd MineReserves: 21.6mtResources: 59.8mtReserve Grade Zn: 4.5%Reserve Grade Pb: 2.7%Ore Production Capacity:2.0mtpaNote: Map not to scale3Kayar MineReserves: 1.8mtResources: 9.5mtReserve Grade Zn: 12.6%Reserve Grade Pb: 1.8%Initial Ore ProductionCapacity:0.35mtpaOver 10 million tonnes of ore production capacityHZL Corporate Presentation (September 2012)
  4. 4. World Class Smelting and Power AssetsSamana - 88.8MWChanderiya Smelting ComplexZinc Smelter DebariPyrometallurgical Lead Zinc Smelter:105,000 tpa Zinc35,000 tpa Lead168 tpa SilverHydrometallurgical Zinc Smelter:420,000 tpa ZincAusmeltT M Lead Smelter:50,000 tpa LeadCaptive Power Plant: 234MWHydrometallurgical Zinc Smelter:88,000 tpa ZincGadag - 34.4MWGopalpura – 15MWWind Power Plant - KarnatakaMokal - 79.8MWOsiyan - 9MWWind Power Plant - RajasthanChakala - 25.5MWWind Power Plant - MaharashtraMuthiyampatti - 21MWWind Power Plant - Tamilnadu4Wind Power Plant - GujaratDariba Smelting ComplexHydrometallurgical Zinc Smelter:210,000 tpa ZincLead Smelter100,000 tpa LeadCaptive Power Plant: 160MWOver 1 million tonnes of metal & ~800MW of power capacityHZL Corporate Presentation (September 2012)
  5. 5. Resource Driven Growth Substantial Reserves & Resources base with 25+ years mine life Best-in-class assets and fully integrated operations Global cost leadership and high operating margins Resource driven growth strategy Superior FCF generation - EBITDA to FCF conversion of over 80% Experienced management team supporting minimal-risk growth5HZL Corporate Presentation (September 2012)
  6. 6. Exceptional Track Record6HZL Corporate Presentation (September 2012)Reserves & Resources more than doubled (mt) Mined metal (kt) - CAGR of around 13%YearReserves &Resources (mt)Ore ProductionCapacity (mt)Zn-Pb Metal ProductionCapacity (kt)Silver ProductionCapacity (t)2002 143.7 3.45 204 742012 332.3 10.25 1,064 518FY 04FY 05FY 06FY 07FY 08FY 09FY 10FY 11FY 123.73.94.85.15.85.87.17.58.0146.3164.8177.6209.4232.3272.0298.7313.2332.316.218.020.224.127.531.534.134.735.0DepletionReservesM&I ResourcesInferred ResourcesTotal R&R BaseR&R in-ground Metal247298364409532572629735769840 830
  7. 7. Near-term Priorities Mined metal (MIC) production close to capacity Lead and Silver throughput close to 185kt and 500t capacity Brownfield exploration continues to be rewarding Finalize next phase of mining production growth Maintain cost leadership7HZL Corporate Presentation (September 2012)
  8. 8. Cost Leadership8HZL Corporate Presentation (September 2012)Low cost base supported by – Tier-I assets with high gradesand good mineralogy Fully integrated operations Significant by-product credits Captive Power plantsZinc COP in first quartile of global cost curve01,0002,0003,0004,0005,000ZnCompositecost-c1cashcost($/t)Cumulative Production (Percentile)HZL($ 342/t)1Source: Wood-Mackenzie for Zinc C1 cost curve;1 Zinc India FY2012 COP of $342/t calculated as per Wood-Mackenziemethodology. Zinc India remains in the First Quartile based on reportedFY2012 COP of $834/t, which does not consider credits for silver andlead.Refined Zinc – Lowest Quartile Cost Position25% 50% 75%
  9. 9. Growing Silver Portfolio Among the largest silver resources companies in the world. On track to become top 10 silver producers at 16moz driven by higher production & ore gradeat SKM and improved metal recoveries across mines/smelters.9HZL Corporate Presentation (September 2012)Global Silver Producers2 (moz)Silver1 – Volume growthSource. 1. Company’s Guidance for Integrated Silver Production in FY132. The Silver Institute World Silver Survey 20114739 3724 2320 18 17 17 14 14At 16 m oz, HZL willbe among Top 10global silver producers4.35.7 5.87.811.0FY09 FY10 FY11 FY12 FY13E*Production (moz)
  10. 10. Positive Market Outlook Demand – supply gap expected to widen on supply shortfall and robust consumption growth Consequently, Zinc prices projected to be in secular uptrend10Notes: 1. Probable projects are those projects likely to enter commercial production in the future, but are subject to a significantdegree of uncertainty, particularly with regard to timing. The uncertainty usually relates to economic or technical matters.HZL Corporate Presentation (September 2012)Sources of Future Zinc Mine Production1 (ktpa)Source. BrookHunt2000400060008000100001200014000160001800020000220001990 1995 2000 2005 2010 2015 2020 2025Probable B ProjectsProbable A ProjectsPossible Mine LifeExtensionsBase Case ProductionCapabilityRequirement for Zinc MineProduction
  11. 11. Community EngagementFostering Self-Reliance through CommunityDevelopment Reaching to more than half a million people inRajasthan Positively impacting lives of more than 55,000families in 184 Villages in Rajasthan Members of United Nations Global Compact (UNGC),TERI-BCSD (Business Council for SustainableDevelopment) and National Population StabilizationFund CSR initiatives undertaken on local needs of thecommunity focusing on :- Health & Nutrition- Education- Water & Sanitation- Sustainable Livelihood- Agriculture & Livestock Development- Women Empowerment- Social Forestry- Community Asset Creation11GujaratGujaratGujaratGujaratGujaratGujaratGujaratGujaratGujaratMadhya PradeshMadhya PradeshMadhya PradeshMadhya PradeshMadhya PradeshMadhya PradeshMadhya PradeshMadhya PradeshMadhya PradeshRAMRAMRAMRAMRAMRAMRAMRAMRAMRDMRDMRDMRDMRDMRDMRDMRDMRDM CLZSCLZSCLZSCLZSCLZSCLZSCLZSCLZSCLZSZMZMZMZMZMZMZMZMZMZSDZSDZSDZSDZSDZSDZSDZSDZSDVZSVZSVZSVZSVZSVZSVZSVZSVZSBansw araChittorgarhJaipurBhilw araBundiDungarpurSirohiTonkAjmerKotaUdaipurRaj SamundPaliRAJASTHANHZL Corporate Presentation (September 2012)
  12. 12. Green Initiatives12Climate Change Management Leading wind power generator in India- ~274MW ofinstalled wind power Registered 4 CDM projects with UNFCCC for utilizingwaste heat, low calorific value gas and generating windpower 100,000 plantations on the occasion of WorldEnvironment Day- 5th June 2012. Total plantation:1.35 millionReducing water footprint Sewage treatment plant, Effluent treatment plant andReverse Osmosis plant in place for recycling 100% ofwaste water generated Adiabatic cooling towers in place of conventional watercooling towers in Roaster at DaribaGainfully utilizing waste Ensuring 100% use of fly ash and bottom ash incement manufacturing More than 0.8 million MT of ISF slag utilized in cementmanufacturing Pilot study conducted on utilizing Jarofix in roadconstruction, results are favorableHZL Corporate Presentation (September 2012)Water Consumption (cum/tonne)
  13. 13. EXPLORATIONTerry BarclaySeptember 2012“Adding Value through discovery -using world’s best technology andexperts
  14. 14. Exploration Driving Growth Increasing Reserves and Resources at existing mines Large-scale exploration program with pan-India activities driven by opportunity rather thanlocation or commodity Pan-India RPs and PLs14Exploration Presentation (September 2012)Aiming to discover world class Lead-Zincdeposits in RajasthanActive project generation to identify newLead- Zinc beltsHZL RP/PL/MLApplied RP/PL/ML for Base metalsApplied RPs for Phosphate
  15. 15. Major Exploration Techniques15Exploration Presentation (September 2012)DRILLINGBrownfields – 45,000mGreenfields – 29,000mGEOPHYSICS4,000 line kms- Ground Magnetics- Electromagnentics- Induced PolarisationDETAILED GEOLOGICAL MAPPING- 80 sq kmsSOIL GEOCHEMISTRY- 20,000 samples
  16. 16. 16RAMPURA AGUCHA MINE
  17. 17. Overview17RAM Presentation (September 2012)Commissioned : 1991Location : 225 km north ofUdaipur (Rajasthan)Mining Lease Area : 1,200 HaReserves : 69.3 million tonnesResources : 41.1 million tonnesAvg. reserves grade : 13.7% Zn, 1.9% PbOre Production capacity : 6.15mtpaMining Method : Open Cast up to 372m,underground beyondWaste Management : Waste dump (20m x5 lifts)World’s largest Zinc mine is also one of the lowest cost producers globally
  18. 18. Consistent growth18RAM Presentation (September 2012) Major Focus Areas:− Focused exploration to enhancethe reserves & resources base− Operational efficiencyimprovement through continuousimprovement initiatives− Continuous technological up-gradation− Utilization of HEMM at par withglobal benchmark
  19. 19. Isometric view19 Development ore from underground project – 2HFY13 Commercial production from underground project – FY14 Total ore production from open cast & underground - ~ 6.0mtpaRAM Presentation (September 2012)
  20. 20. 20DARIBA SMELTING COMPLEX
  21. 21. Overview21DSC Presentation (September 2012)Dariba Smelting Complex- Hydro Zinc smelter – 210,000 tpa Lead smelter – 100,000 tpa Captive Power – 160MWCaptive mines in immediate vicinity- Rajpura Dariba Mine (Underground)Production capacity – 0.9mtpa Sindesar Khurd Mine (Underground)Production capacity – 2.0mtpaZinc-Lead smelting complex with captive Zinc-Lead mines and power plants
  22. 22. Zinc Smelter - Overview22DSC Presentation (September 2012) Technology-Hydro metallurgy(Roast, Leach & Electro-winning) Technology Supplier-Outotec Plant Capacity-210,000 tpa Plant consists of-- Roaster and acid plant- Leaching and Purification- Cell House
  23. 23. Lead Smelter - Overview23DSC Presentation (September 2012) Technology-SKS, Bottom blowing Technology Technology Supplier-ENFI, China Plant Capacity-100,000 tpa Plant consists of-- SKS Furnace – Bottom blowing- Blast furnace- Electric arc furnace & Fuming furnace- Electro - refining
  24. 24. 24SINDESAR KHURD MINE
  25. 25. Overview25Location : 82 km North-east of UdaipurAccess to mine : Through two Ramps(5.5m wide x5.0m height)(4.3m wide x3.0m height)Method of working : Blast hole open stoping in upper blockLHS with paste filling in lower blockOre hauling : Planned up to a depth of 400/450m through ramps;and below that through shaftMine ventilation : Two ventilation shafts, Peripheral typeProduction capacity : 2.0mtpaExplored depth : 1,100m from surfaceSindesar Khurd Presentation (September 2012)
  26. 26. Accelerated Growth26 Ore production capacity ramped-up to2.0mtpa from 0.3mtpa in 2006 Reserves & Resource base of 81.4mtwith 417moz of Silver Most mechanized mine in India –− comparable to other world-classmines− track-less mining− largest capacity equipments− operation cost comparable toopen-cast minesSindesar Khurd Presentation (September 2012)Mined metal (tonnes) - CAGR of around 82%
  27. 27. Geotechnical Characteristics of Rock Mass27 Rock mass at Sindesar Khurd is of highstrength, has good rock mass qualityand few joints There is little difference in rock massconditions between footwall, ore-bodyand hang-wall SK rock mass is classified as good tovery good There are no major or regionalstructural features There are no significant ground waterissuesSindesar Khurd Presentation (September 2012)
  28. 28. LVS of Sindesar Khurd Mine28Sindesar Khurd Presentation (September 2012)
  29. 29. 29THANK YOU

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