Zn India Metal Bulletin, London May06

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Zinc Industry In India

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Zn India Metal Bulletin, London May06

  1. 1. Zinc Metals Industry in India 10th Zinc & its Market Seminar 24th – 26th May, 2006 Sheraton Park Lane Hotel, London Zinc Metal Industry in India 20 May 2006 1 ©MECON LIMITED, Bangalore
  2. 2. Zinc Metal Industry in India Presentation By: D.K. Basu@, B.C. Kabra#, P.R.Chandna#, S.Roy$ @ -General Manager In charge, # Deputy. General Manager, $ - Asst. General Manager Zinc Metal Industry in India 20 May 2006 2 ©MECON LIMITED, Bangalore
  3. 3. CONTENTS Indian Zinc Heritage Sectoral Zinc Consumption in India & the World. Growth of Indian Zinc industry Indian Zinc Industry among Top 5 producers Indian Zinc Mines & Reserves Indian Zinc Smelting Capacities & Productions Indian Zinc Demand & Supply. Drivers for Zinc Growth in India Future Indian Zinc Scenario Indian Zinc Cash Costs An Introduction to MECON Limited Indian Lead – Zinc Industry & MECON’s Association Conclusions Zinc Metal Industry in India 20 May 2006 3 ©MECON LIMITED, Bangalore
  4. 4. Indian Zinc Heritage Zinc in India has a rich history and heritage. Lead & Zinc metals have been known in India during Vedic times. The excavation work carried out by British Museum, MS university and HZL at Zawar Mines and existing slag heaps at various ancient mining sites at Rajasthan provide conclusive proof of highly developed extractive metallurgical technology for zinc metal in India. American Society of Metals (ASM) recognised these sites at Zawar Mines as one of the International Historical Landmarks. Picture Courtesy HZL Ancient Zinc Retorts at Zawar Mines Zinc Metal Industry in India 20 May 2006 4 ©MECON LIMITED, Bangalore
  5. 5. USES OF ZINC Zinc’s largest single use is in the corrosion protection. Galvanizing is the main method of protection against corrosion of steel, i.e., the steel is coated with a layer of zinc in order to protect it from decay. Brasses are alloys of copper and zinc, and they have good mechanical properties and good corrosion resistance. Die casting are precision casting that can be mass-produced. Rolled zinc is used for architectural and building applications, and for dry cell batteries. Zinc oxide has its main use in tyres and rubber products. Many other zinc chemicals are used in a wide range of applications. Health - humans and animals alike need zinc in their food for good health and healing of wounds Zinc Metal Industry in India 20 May 2006 5 ©MECON LIMITED, Bangalore
  6. 6. Sectoral Zinc Consumption in India Zinc Metal Industry in India 20 May 2006 6 ©MECON LIMITED, Bangalore
  7. 7. World Zinc Uses FIRST USE FOR ZINC END USE FOR ZINC Zinc Metal Industry in India 20 May 2006 7 ©MECON LIMITED, Bangalore
  8. 8. World’s Top 5 Zinc – Lead Mines Mines Capacity k t/yr Lead Zinc Red Dog 125 570 Century 80 500 Antamina - 320 Rampura Agucha 25 375 Brunswick 70 260 TOTAL 300 2025 Source: ILZSG/ Private Communication Zinc Metal Industry in India 20 May 2006 8 ©MECON LIMITED, Bangalore
  9. 9. Growth of Indian Zinc Industry 1967:10,000 TPA BINANI Zinc Smelter, at Alwaye (RLE Process). 1968:18,000 TPA HZL Zinc Smelter, at Debari (RLE Process) 1977:27,000 TPA HZL Zinc Smelter, at Debari (RLE Process) 1978:30,000 TPA HZL Zinc Smelter, at Vizag (RLE Process) 1983:4,000 TPA HZL Zinc Smelter, at Debari (Conversion Process) 1991:70,000 TPA HZL Zinc Smelter, at Chanderiya (ISF Process) 1995:20,000 TPA BINANI Zinc Smelter, at Alwaye (Expansion) 2001:10,000 TPA HZL Zinc Smelter, at Debari (Expansion) 2001:10,000 TPA HZL Zinc Smelter, at Vizag (Expansion) 2005:170,000 TPA HZL Zinc Smelter, at Chanderiya (New RLE Process) 2005:8,000 TPA BINANI Zinc Smelter, at Alwaye (Expansion) Zinc Metal Industry in India 20 May 2006 9 ©MECON LIMITED, Bangalore
  10. 10. Location of Major Zinc Mines Zinc Metal Industry in India 20 May 2006 10 ©MECON LIMITED, Bangalore
  11. 11. Indian Zinc Mines Reserves In Million tonnes as on 31st March 2004 MINES Resources Reserves Measures & Inferred Proved & indicated Probable Qty. Zn% Pb Qty. Zn% Pb% Qty. Zn Pb % % % Rampura 11.1 12.7 1.7 13.8 12.2 1.7 50.1 12.8 1.9 Agucha Rajpura 12.2 7.5 2.5 19.6 5.7 2.1 10.6 5.9 1.7 Dariba Zawar 22.5 4.8 1.9 13.8 3.7 3.1 5.8 4.4 1.8 Kayar 0.8 13.3 2.2 4.5 11.0 1.5 Total 46.6 7.5 2.0 51.7 7.4 2.2 66.5 11.0 1.9 Source: HZL Annual Report Zinc Metal Industry in India 20 May 2006 11 ©MECON LIMITED, Bangalore
  12. 12. Indian Zinc Smelter Capacities Zinc Smelters Capacity t/yr Debari Zinc Smelter 80,000 ( RLE Process) Vizag Zinc Smelter 56,000 (RLE Process) CLZS, Chanderiya 105,000 (ISF Process) CLZS, Chanderiya 170,000 (RLE Process) Binani Zinc Smelter 38,000 (RLE Process) CLZS, Chanderiya 170,000 (RLE Process) (Under Implementation) Zinc Metal Industry in India 20 May 2006 12 ©MECON LIMITED, Bangalore
  13. 13. Indian Refined Zinc Productions Year HZL BZL Total 2000-01 148,092 29,923 178,055 2001-02 176,395 28,814 205,209 2002-03 207,066 28,459 235,525 2003-04 220,664 29,218 249,882 2004-05 212,445 26,346 238,791 18,200E 302,200E 2005-06 284,000 Note: E – Estimates Source: MMR/ Annual Reports- HZL/BZL Zinc Metal Industry in India 20 May 2006 13 ©MECON LIMITED, Bangalore
  14. 14. World Refined Zinc Productions (in Thousand Tonnes) 2002 2003 2004 2005 Europe 2,914 2,741 2,721 2,649 Africa 147 194 259 273 America 1,903 1,930 1,993 1,889 Asia 4,189 4,450 4,912 5,051 Oceania 567 553 474 457 Total 9,720 9,868 10,359 10,319 Source: ILZSG Zinc Metal Industry in India 20 May 2006 14 ©MECON LIMITED, Bangalore
  15. 15. Indian Zinc – Demand & Supply Year Demand Supply Gaps % Satisfaction 2004-05 400,000 239,000 161,000 60 2009-10 650,000 540,000 110,000 83 2014-15 960,000 557,000 403,000 58 2019-20 1410,000 557,000 853,000 40 Zinc Metal Industry in India 20 May 2006 15 ©MECON LIMITED, Bangalore
  16. 16. Drivers for Indian Zinc Growth India’s real GDP growth @ 8.4%; 7.5% & 8.1% for the past three years. Industrial production has grown @ 7.1%, 8.1% and 9.4% in the same years. Increased activities in the manufacturing sectors. Continuing liberalisation. Infrastructure growth – recent setting up of Infrastructure Bank will further boost the demand. Zinc Metal Industry in India 20 May 2006 16 ©MECON LIMITED, Bangalore
  17. 17. Expected Future Growths India: 10-12% China: 15-17% USA: 9% World: 3-4% Source: ILZSG Zinc Metal Industry in India 20 May 2006 17 ©MECON LIMITED, Bangalore
  18. 18. ZINC PRICES Mainly two factors – shortage of zinc concentrate & investment opportunity have led to the growth in the present zinc prices worldwide. Further increase would be detrimental to zinc demand growths in the small & medium sector. Zinc Metal Industry in India 20 May 2006 18 ©MECON LIMITED, Bangalore
  19. 19. Cash Costs for Zinc Indian cash costs are one among the lowest worldwide. 60 50 40 Trend Line US Cents/lb. 30 20 10 0 2000-01 2001-02 2002-03 2003-04 2004-05 Years Source:: HZL Annual Reports Zinc Metal Industry in India 20 May 2006 19 ©MECON LIMITED, Bangalore
  20. 20. Future Indian Zinc Scenario In the past six years zinc metal productions in the country has increased by ~70%. Per capita consumption of zinc is only ~ 0.4 kg; quite low as compared to developed countries & world averages - indicating great potential for further growths. On commissioning of the new zinc smelter of 170,000 TPA by March 2008; percent demand satisfaction will rise to 80 -83%. However, ten years from now; self sufficiency will again fall back to the present levels of 60%. Therefore, before 2010 setting up of an additional Zinc Smelting capacities would be an imperative. Export potential to our neighbouring country - China would further shorten this time frame. At the preset levels of productions the existing mines reserves would only be sufficient for the next 15-18 years, unless augmented by new explorations. Zinc Metal Industry in India 20 May 2006 20 ©MECON LIMITED, Bangalore
  21. 21. An Introduction - MECON LIMITED MECON Limited is the India’s frontline engineering, consultancy and contracting organisation, offering full range of services for setting up of Projects from Concept to Commissioning including EPC/ Turn-key execution. It is a multi-disciplinary company with 950 experienced engineers, scientists and technologist, having a network of offices spread over the country. Areas of activities are: Iron & steel Non-Ferrous metals Power Oil & Gas Infrastructure Zinc Metal Industry in India 20 May 2006 21 ©MECON LIMITED, Bangalore
  22. 22. Indian Lead Zinc Smelters & MECON’s ASSOCIATION Zinc Metal Industry in India 20 May 2006 22 ©MECON LIMITED, Bangalore
  23. 23. Chanderiya Lead Zinc Smelter Chronology of Events for Execution of CLZS Plant: 1977: Discovery of Rampura Agucha Mines. 1980: Takeover of Mines by HZL 1982: Preparation of mining Feasibility Report – SNC, Canada. 1982: Preparation of Smelting Pre-Feasibility Report – Stolberg, Germany. 1982: Preparation of Smelting bankable Feasibility Report – MECON. 1987: Execution of setting up of plant in Two phases: Phase-I: Preparation of Firm Cost Estimates ± 5% - MECON. Phase-II: Detailed Engineering, Site Construction & PMC – MECON. 1991: Lead Refinery Commissioned in March. ISF plant Commissioned in October. Zinc Metal Industry in India 20 May 2006 23 ©MECON LIMITED, Bangalore
  24. 24. Chanderiya Lead Zinc Smelter Salient Features: Plant Capacities: Zinc: 70,000 TPA Lead: 35,000 TPA Sulphuric Acid: 160,000 TPA Cadmium: 235 TPA Silver: 50 TPA The plant was commissioned within the time schedule, in spite of deterrents during the execution period like; oil crisis during Iran- Iraq war & change in the lead technology from Electro-refining to Pyro-refining and the project was commissioned within budgets Capex of Rs 5170 Million.. Zinc Metal Industry in India 20 May 2006 24 ©MECON LIMITED, Bangalore
  25. 25. Chanderiya Lead Zinc Smelter METHODOLOGY OF IMPLEMENTATION: The project was implemented in two phases on Turn-key Concept for the main process units. Phase- I: Basic Engineering & Firming up of scope Procurement activities before commitment Preparation of Firm Cost Estimates within an accuracy of ± 5%. Phase-II: Procurement Erection/ construction Commissioning Zinc Metal Industry in India 20 May 2006 25 ©MECON LIMITED, Bangalore
  26. 26. Chanderiya Lead Zinc Smelter METHODOLOGY OF IMPLEMENTATION: Various Turnkey Packages: 1. Raw Material storage & handling plant 9. Sulphuric acid plant 2. Sintering & Gas Cleaning Plant 10. Effluent Treatment plant 3. Imperial Smelting Furnace Plant 11. Power Distribution & Lighting 4. Zinc Pyro- Refining 12. Auxiliary Power & DG Sets 5.Lead Electro-Refining & Minor Metals plant 13. Water Supply System 6. Copper Recovery (SX-EW) plant 14. Utility System 7. Precious Metals plant 15. Telecommunication 8. Cadmium Plant Zinc Metal Industry in India 20 May 2006 26 ©MECON LIMITED, Bangalore
  27. 27. Debari Zinc Plant Expansion Services Rendered: 1991: FR for Revamping of RA Plant –I. 1992: Technology Selection & Feasibility Study – RLE vis-à-vis Pressure Leach Processes. 1997: FR for Expansion of Debari Zinc Smelter plant by 10,000 TPA. 2001: Expansion & Performance of Debari Zinc Smelter by 10,000 TPA – M/s AdZ Technology. Presently plant is producing more than 75,000 TPA. Zinc Metal Industry in India 20 May 2006 27 ©MECON LIMITED, Bangalore
  28. 28. Vizag Zinc Plant Expansion Services Rendered: 1997: FR for Expansion of Vizag Zinc Smelter plant by 10,000 TPA. 2001: Expansion & Performance of Vizag Zinc Smelter by 10,000 TPA – M/s AdZ Technology. Presently plant is Producing more than 50,000 TPA of Zinc. Zinc Metal Industry in India 20 May 2006 28 ©MECON LIMITED, Bangalore
  29. 29. Vizag Lead Plant Expansion Services Rendered: 1987: FR for Modernisation of Lead Refineries at Tundoo & Vizag Lead Smelter plants. 1989: Detailed Engineering & Project Management of Lead Refinery Modernisation – MIM Technology. 1999: 22,000 TPA Lead Smelter Plant – Due Diligence & Health Study. Zinc Metal Industry in India 20 May 2006 29 ©MECON LIMITED, Bangalore
  30. 30. Chanderiya Lead Plant Expansion Zinc Metal Industry in India 20 May 2006 30 ©MECON LIMITED, Bangalore
  31. 31. Chanderiya Lead Plant Expansion First Slag Tape Construction of Ausmelt Furnace Zinc Metal Industry in India 20 May 2006 31 ©MECON LIMITED, Bangalore
  32. 32. Salient Features – CLZS Lead Plant Expansion Capacity: 50,000 TPA Lead Bullion Know-how & Technology: M/s Ausmelt, Australia Implementation Philosophy:Project Non- Turnkey (10 Nos. Major Cost Packages) Project Cost: $ 35 Million. Schedule: 24 Months Civil/ Structural Quantities: Excavation: 11,200 Cub.m. RCC: 6,000 Cub.m. Steel Structures: 1,650 tonnes. The plant has been completed within the time schedule and the quality of the work has been appreciated by the Process licensor – M/s Ausmelt, Australia.. Zinc Metal Industry in India 20 May 2006 32 ©MECON LIMITED, Bangalore
  33. 33. Indian Lead Smelter capacities Lead Smelters: Capacities TPA: CLZS, Chanderiya 35,000 (ISF - Process) CLZS, Chanderiya 50,000 (Ausmelt Process) TOTAL 85,000 Zinc Metal Industry in India 20 May 2006 33 ©MECON LIMITED, Bangalore
  34. 34. Other Assignments in Zinc Industry TEFR, Basic Engineering, & Procurement services, for Ganesh Himal – Lead Zinc Project, - M/s Nepal Metal Company Ltd. Formulation Report for setting up of Zinc Smelter plant of 60,000 TPA, Kapasan – M/s Hindustan Zinc ltd.. Setting up of 100,000 TPA Zinc Ingots Custom based Zinc Smelter Plant - M/s Sterlite Industries Ltd. Site Selection report for setting up of 170,000 TPA Zinc Smelter Plant – M/s Hindustan Zinc Ltd. Zinc Metal Industry in India 20 May 2006 34 ©MECON LIMITED, Bangalore
  35. 35. Conclusions To accept the present challenges by the Indian Zinc Industry, adaptation of some of the following measures are imperative in the near future to aim self sufficiency of the zinc metals in India: Explorations at a greater pace to discover the new economically feasible Zinc mineral resources. Setting up of new Zinc Smelters with economy of scale capacities & environmental sustainability between the years 2010 - 2015. Technological up gradation to improve metal recoveries & productivities and to reduce cash costs at the existing Mines and Smelting operations, like setting up of mechanized tank houses etc. Recovery of Metal values from the process wastes like leach residues/ EAF dusts/ tailings etc., by adopting the low investment capital cost & environmentally sound technology. Indian consultancy need to play a more proactive role in the absorption of the new technologies, development of basic know-how & engineering in areas other than proprietary equipment/technologies and to execute the projects within the budgeted costs & time schedules. Zinc Metal Industry in India 20 May 2006 35 ©MECON LIMITED, Bangalore
  36. 36. Acknowledgement The permission from MECON Limited to write and present this paper is gratefully acknowledged. Authors also thankfully acknowledges the various sources of information/ data. Zinc Metal Industry in India 20 May 2006 36 ©MECON LIMITED, Bangalore
  37. 37. THANK YOU MECON LIMITED # 89, Southend Road, Basavanagudi, Bangalore – 560 004, Karnataka – INDIA Tel:+91-80-26571661 to 1668 Fax: +91-80-26576352 E-mail: nf@meconblr.com or meconblr@vsnl.com Web site: www.mecon.co.in Zinc Metal Industry in India 20 May 2006 37 ©MECON LIMITED, Bangalore

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