Hindustan Zinc Limited (HZL), which operates under Vedanta Limited, intends to raise its zinc production capacity from 1 million tonnes per annum to 1.5 million tonnes per annum in the current fiscal year.
“Zinc will play a key role in India’s growth story. We are looking forward to at least 3-4 percent growth in the sector and plan to ramp up our production from 1 million tonnes to 1.5 million tonnes per annum," Priya Agarwal Hebbar, Chairperson of HZL and non-executive director of Vedanta Ltd, said at the company’s 57th annual general meeting (AGM).
During the fiscal year 2022-2023, the company achieved production exceeding 1 million tonnes of refined metal. In the initial quarter of the new fiscal year, the company recorded a metal production of 257 kilotonnes, said Hebbar.
As part of its environmental, social, and governance (ESG) objectives, Hindustan Zinc is planning to decrease its reliance on coal by 50 percent over the next two years, aiming to enhance its sustainability.
“Today, our Pantnagar Metal Plant is powered 100 percent by renewable energy, and with our solar & wind projects accounting for 180- MW and 250 MW respectively, HZL will reduce its coal dependency by 50 percent by 2025," she said. HZL became the first in the country to introduce battery-operated electric vehicles (EVs) in underground mining, she added.
The company is aiming to achieve its ESG targets by 2030, ahead of the parent Vedanta Group's goal set at 2050, added Hebbar.
In the first quarter of the fiscal year 2024, Hindustan Zinc saw a drop of 36.5 percent in its net profit at Rs 1,964 crore compared to Rs 3,092 crore during the same period in the prior year. This decline was attributed to reduced metal prices. The company's revenue for Q1FY24 dropped by 22.4 percent to Rs 7,282 crore from Rs 9,387 crore on a year-on-year basis.
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