Section 1

1
 1.1 COMPANY PROFILE

Name of company : Hindustan Zinc

Form of organisation : Public

Registered office : Yashad Bhavan,

Udaipur city, Udaipur
Rajasthan 313001

Date of establishment : 10 January, 1966

Group Company : Hindustan Zinc Limited (HZL)

General Manager : Arun Shrimali

Managing Director : Arun Misra

Parent : Vedanta Ltd.

Name of plant : Zinc

Silver
Lead
Sulphuric Acid
Company logo :

2
1.1.1 HISTORY
Hindustan Zinc Limited was incorporated from the erstwhile Metal Corporation of India on 10
January 1966 as a Public Sector Undertaking.
Hindustan Zinc Ltd a Vedanta Group company is the market leader in zinc lead and sulfuric acid
business. The company is India's only and the world's largest integrated producer of Zinc-Lead.
They are also one of the leading Silver producers in the world. They are one of the lowest cost
producers in the world and are well placed to serve the growing demand of Asian countries.
Hindustan Zinc Ltd was incorporated from the erstwhile Metal Corporation of India on January
10 1966 as a Public Sector Undertaking. In April 2002 Sterlite Opportunities and Ventures Ltd
(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.
2003-04
The company completed the 35000 tonnes of zinc debottlenecking at Chanderiya Smelter
Complex.
2004-05
The company expanded the Rampura Agucha Mine from 2.30 million tonnes per annum to 3.75
million tonnes per annum.
2005-06
The company commissioned 170000 tonnes per annum of Hydrometallurgical Zinc Smelter
(Hydro I) at Chanderiya Smelter Complex. They commissioned 2 X 77 MW Captive Power
Plant at Chanderiya Smelter Complex. Also they Commissioned 50000 tonnes per annum of
Ausmelt Lead Smelter at Chanderiya Smelter Complex.
2006-07
The company began production in Sindesar Khurd Mine with an initial production capacity of
0.3 million tonnes per annum. Also they Commissioned 38.4 MW of Wind Energy Farms at
Gujarat.
2007-08
The company commissioned 170000 tonnes per annum of Hydrometallurgical Zinc Smelter
(Hydro II) in a benchmark time of 20 months at Chanderiya Smelter Complex. They
commissioned 80 MW Captive Power Plant at Chanderiya Smelting Complex. They completed
5000 tonnes of zinc debottlenecking at Debari Zinc Smelter. Also they Commissioned 50.4 MW
of Wind Energy Farms at Gujarat.
2008-09
The company expanded the Rampura Agucha Mine from 3.75 million tonnes per annum to 5.00
million tonnes per annum making the total mining capacity of the Company to 7.40 million
tonnes per annum. They completed the 88000 tonnes per annum zinc debottlenecking at
Chanderiya Smelter Complex & Debari Zinc Smelter making the total metal production capacity

3
to 754000 tonnes per annum. They commissioned 80 MW Captive Power Plant at Zawar Mines.
Also they commissioned 34.4 MW Wind Energy Farms making the Company's total Wind
Energy capacity to 123.2 MW.
2009-10
The company expanded the Rampura Agucha Mine from 5.00 million tonnes per annum to 6.00
million tonnes per annum increasing the total mining capacity of the Company to 8.40 million
tonnes per annum. Also they commissioned the 210000 tonnes per annum Hydrometallurgical
Zinc Smelter at Rajpura Dariba increasing the Zinc & Lead metal production capacity to 964000
tonnes per annum (879000 tonnes of Zinc and 85000 tonnes of Lead).
2010-11
The company commissioned the 1.50 mtpa concentrator at Sindesar Khurd. Also they added 160
MW (80X2) captive power generation capacity at Dariba. In January 2011 the company
announced an addition of 150 MW in our existing wind power capacity. Of this around 135 MW
has already been commissioned. The balance capacity is expected to be commissioned in Q4 FY
2012.
2011-12
The company ramped-up Sindesar Khurd mine to 2.0 mtpa capacity. During the year the
company commissioned the 100 ktpa lead smelter at Dariba increasing the lead production
capacity to 185 ktpa. The company also commissioned new silver refinery increasing the silver
refining capacity to 500 TPA. The company commissioned 102 MW expansion in wind power
increasing total wind power generation capacity to around 274 MW. During the year the
company commenced underground mine development work at Rampura Agucha mine and
Greenfield Kayar mine.
2012-13
HZL produced development ore from Rampura Agucha underground mine and Kayad
underground mine. It also announced the next phase of growth plan to increase capacity to 1.2
million tonnes per annum.
2013-14
HZL commissioned new roaster at Dariba. The company also commissioned the first sewage
treatment plant in Udaipur which will treat 20 million liters of sewage per day.
2014-15
Paste fill plant at Sindesar Khurd Mine and Rampura Agucha Mine were commissioned.
2015-16
HZL's Sindesar Khurd Mine achieved 3 million MT per annum production capacity. During the
year the Sindesar Khurd Mine beneficiation plant was debottlenecked to enhance its capacity
from 2.0 million MT per annum to 2.75 million MT per annum.
2016-17
During the year the Chanderiya Hydrometallurgical Zinc Smelter capacity was enhanced from
4.2 lakh metric tonnes per annum to 4.3 lakh metric tonnes per annum. The Dariba

4
Hydrometallurgical Zinc Smelter capacity was enhanced from 2.1 lakh metric tonnes per annum
to 2.2 lakh metric tonnes per annum.

5
 1.1.2 MISSION & VISION

For Hindustan Zinc Limited safety of our employees and contract employees is our prime
concern. Our people are our assets and their welfare is our responsibility. The promise of Caring,
Sharing, and Growing is an integral part of our company. Our Vision and Mission for Safety
demonstrate our approach towards Safety and wellbeing of our employees.

Vision

Achieving “Zero Harm” to people with the belief that all workplace injuries are preventable

Mission

 To achieve world class Safety Standards

 To create Injury Free Workplace
 Be the world’s Safest Metal Producer
 Zero Tolerance on safety issues

6
1.1.3 PRODUCTS

Hindustan
Zinc Ltd.

Products

Sulphuric
Zinc Silver Lead
Acid

7
 1. Zinc

Hindustan Zinc Ltd produce refined zinc metal, which is used in a number of applications
including galvanising, oxides, die castings and alloys.

PRODUCT FORM WEIGHT

Special High Grade Standard 25 kgs
(SHG) Ingots
Jumbo Ingots 1000 kgs
Continuous Jumbo Ingots 1000 kgs
Galvanizing Grade
(CGG)
High Grade (HG) Standard 25 kgs
Ingots
Jumbo Blocks 600 kgs
Prime Western (PW) Standard 25 kgs
Ingots
Electro-Plating Standard 25 kgs
SHG(EPG SHG) Ingots
Hindustan Zinc Die- Standard 9 kgs
Cast Alloy(HZDA) Ingots

Hindustan zinc’s Special High Grade zinc products are LME registered products under the brand
names

 HZL SHG 99.995

 HZL Zn SHG 99.995
 Vedanta SHG 99.995
 Vedanta Zn SHG 99.995

8
 2. Silver

Hindustan Zinc Ltd are India’s largest and one of the world’s leading integrated silver producer.
We produce refined silver; recovered as a by-product of zinc-lead facility. Our high quality silver
bullion having a minimum purity 99.9% of silver is listed on LBMA Good delivered List (LGD)
– Hindustan Zinc Pantnagar Unit. We supply Silver in following forms:

 Standard 30 kg bars
 1 kg bars
 Silver Powder

Silver ingot specification

Ingot Weight 30 kg
Length (Top) 310 mm
Length (Bottom) 280 mm
Width (Top) 150 mm
Width (Bottom) 120 mm
Height 75 mm

9
 3. Lead

Hindustan Zinc Ltd produce Lead ingots with min 99.99% purity which are registered with LME
under following brand names:

 Vedanta 99.99
 Vedanta Pb 99.99

Lead metal is used in a number of applications including battery segment, lead-based pigments
and cathode ray tubes. Our refined lead metal is available in standard 25 kgs ingots.

Lead metal is used in a number of application with primary being Lead Acid Battery and others
include pigments and chemicals.

10
 4. Sulphuric Acid

Hindustan Zinc Ltd produce 98 % concentrated Sulphuric Acid at our production facilities in
Chanderiya, Debari and Dariba in the state of Rajasthan.

Plant Locations & Installed Capacity

 Dariba, Rajasthan – 0.6 Million Tonnes annually.

 Chanderiya, Rajasthan – 0.6 Million Tonnes annually
 Debari, Rajasthan – 0.3 Million Tonnes annually

11
1.1.4 Form of Organization

Features Public Limited Company

Minimum number of members 7

Maximum number of members Unlimited

Number of Directors At least 3
Transferability of shares There is no restriction.
Issue of Prospectus Can issue a Prospectus.
Directors of a Public Company must have a file with the
Consent of the directors
Registrar consent to act as Director of the company.

Directors of a Public Company are required to sign an

Qualification shares undertaking to acquire the qualification shares of the
public Company.

A Public Company cannot start its business until a

Commencement of Business
Certificate to commencement of business is issued to it.

Public Company is free to invite the public for

Shares Warrants subscription i.e., a Public Company can issue a
Prospectus.

Public Company has to offer the further issue of shares

to its existing shareholders as the right shares.

Further issue of shares Further issues of shares can only be an offer to the
general public with the approval of the existing
shareholders in the general meeting of the shareholders
only

Must call its statutory Meeting and file a Statutory

Statutory meeting
Report with the Register of Companies

5 members must be present personally

Quorum
(However, the Articles of Association may provide and
several members more than the required under the Act.)

12
1.1.5 Organizational Structure
CEO
Sunil Duggal

CFO COO Mines COO Smelter

Amitabh Gupta L S Shekhawat Pankaj Kumar

Head Projects Head Corporate CCO

Mahesh Todkar HSE V Jayraman Ramakrishnan
Kasinath

Head HR Head CSR Chief HSE Officer

Sanjay Sharma Neelima khetan Heath Thorpe

RP Dashora
Scott Caithness Rajesh Kundu
Site President
Director Site President
Rampura Agucha
Exploration Zawar IBU
IBU

KC Meena Barun Gorain

Chief Technology Head Leagal
Site President
& Information Vineet Bose
Dariba Mining IBU
Officer

13
1.1.6 Locational Issues

1. Air: Surface mines may produce dust from blasting operations and haul roads. Many coal
mines release methane, a greenhouse gaz. Smelter operations with insufficient safeguards in place
have the potential to pollute the air with heavy metals, Sulphur dioxide, and other
pollutants.

2. Water: The mining sector uses large quantities of water, though some mines do reuse much of
their water intake. Mining throws zolpidem-containing minerals into the air, where they
oxidize and react with water to form sulphuric acid. This, together with various trace
elements impacts groundwater, both from the surface and underground mines.

3. Land: The movement of rocks due to mining activities and overburden (material overlying a
mineral deposit that must be removed before mining) in the case of surface mines impacts land
severely. These impacts may be temporary where the mining company returns the rock and
overburden to the pit from which they were extracted. Many copper mines, for example,
extract ore that contains less than 1% copper.

4. Health & safety: Mining operations range from extremely hazardous to being as safe or
as dangerous as any other large scale industrial activity. Underground mining is generally more
hazardous than surface mining because of poorer ventilation and visibility and the danger of
rockfoils. The greatest health risks arise from dust, which may lead to respiratory problems,
and from exposure to radiation.

14
 1.1.7 Awards & Achievements
1997
 The Rampura-Agucha mines of Hindustan Zinc Limited has been awarded ISO 9002 certificate
for quality management system by SGS Ayrsley international certificate services limited.

2005
 Hindustan Zinc LTD has given Greentech Environment Excellence Silver Award for 2004-05
in metal sector for its environment management

2016
 Water Digest Water Awards (WDWA) 2016-17 to DSC

2017
 Environment Excellence Award – 2017 by Indian Chamber of Commerce (ICC)
 CII-IGBC Green Existing Building Platinum Award – 2017
 Exporter with Best Risk Management Practices Award – 2017
 Dun & Bradstreet Corporate Award – 2017

2018
 Hindustan Zinc LTD picks up ‘Golden Peacock’ Award
 ICICI Lombard and CNBC TV 18 – India Risk Management Award 2018
 Hindustan Zinc’s Chanderiya Smelting Complex received ‘Safety Excellence Award 2018’ by
‘Frost & Sullivan TERI – Sustainability 4.0’ for its Safety Initiatives

2019
 Hindustan Zinc received IEI (Institution of Engineers India) Centenary Industry Excellence
Award 2019.
 SAKHI awarded ‘Best CSR Initiative for Women’ during ASSOCHAM Women Achievers
Awards 2019

2020
 Hindustan Zinc’s Debari Smelter wins the prestigious “14th ICC Environment Excellence
Award (2020)”
 Hindustan Zinc wins CII-ITC Corporate Excellence Sustainability Award 2020
 Hindustan Zinc’s SK Mine received “CII National Award for Excellence in Water
Management 2020”

15
1.2 Finance

1.2.1 Turnover
Rs. In Crore
Mar-21 22629
Mar-20 18561
Mar-19 21118
Mar-18 22521

Revenue, Operating income and Net Income

250000

200000

150000

100000

50000

0
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Revenue INR Mil Operating Income INR Mil Net Income Inr Mil

16
1.2.2 Balance Sheet
BALANCE SHEET OF HINDUSTAN 21-Mar 20-Mar 19-Mar 18-Mar
ZINC (in Rs. Cr.)
  12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES        
SHAREHOLDER'S FUNDS        
Equity Share Capital 845 845 845 845
TOTAL SHARE CAPITAL 845 845 845 845
Reserves and Surplus 31,468.00 39,465.00 32,760.00 35,087.00
TOTAL RESERVES AND SURPLUS 31,468.00 39,465.00 32,760.00 35,087.00

TOTAL SHAREHOLDERS FUNDS 32,313.00 40,310.00 33,605.00 35,932.00

NON-CURRENT LIABILITIES        
Long Term Borrowings 4,312.00 0 0 0
Other Long Term Liabilities 1,044.00 1,090.00 964 861
Long Term Provisions 182 162 145 134
TOTAL NON-CURRENT LIABILITIES 5,538.00 1,252.00 1,109.00 995

CURRENT LIABILITIES        
Short Term Borrowings 2,161.00 611 2,538.00 0
Trade Payables 1,545.00 1,488.00 1,174.00 947
Other Current Liabilities 4,100.00 3,244.00 3,958.00 4,972.00
Short Term Provisions 70 70 74 86
TOTAL CURRENT LIABILITIES 7,876.00 5,413.00 7,744.00 6,005.00
TOTAL CAPITAL AND LIABILITIES 45,727.00 46,975.00 42,458.00 42,932.00
ASSETS        
NON-CURRENT ASSETS        
Tangible Assets 18,730.00 16,217.00 14,668.00 11,181.00
Intangible Assets 0 252 110 121
Capital Work-In-Progress 0 2,489.00 2,254.00 3,220.00
FIXED ASSETS 18,730.00 18,958.00 17,032.00 14,522.00
Deferred Tax Assets [Net] 1,058.00 1,822.00 1,925.00 2,208.00
Long Term Loans And Advances 12 13 13 15
Other Non-Current Assets 1,359.00 1,369.00 1,916.00 2,044.00
TOTAL NON-CURRENT ASSETS 21,159.00 22,162.00 20,886.00 18,789.00
CURRENT ASSETS        
Current Investments 12,957.00 20,329.00 19,488.00 20,222.00
Inventories 1,425.00 1,835.00 1,544.00 1,379.00
Trade Receivables 406 401 196 184
Cash And Cash Equivalents 9,376.00 1,918.00 23 1,964.00
Short Term Loans And Advances 2 2 3 1
Other Current Assets 402 328 318 393
TOTAL CURRENT ASSETS 24,568.00 24,813.00 21,572.00 24,143.00
TOTAL ASSETS 45,727.00 46,975.00 42,458.00 42,932.00

17
1.2.3 Profit & Loss A/c
PROFIT & LOSS ACCOUNT OF 21-Mar 20-Mar 19-Mar 18-Mar
HINDUSTAN ZINC (in Rs. Cr.)
  12 mths 12 mths 12 mths 12 mths
INCOME        
REVENUE FROM OPERATIONS [GROSS] 22,071.0 18,332.0 20,834.0 22,213.00
0 0 0
Less: Excise/Service Tax/Other Levies 0 0 0 437
REVENUE FROM OPERATIONS [NET] 22,071.0 18,332.0 20,834.0 21,776.00
0 0 0
TOTAL OPERATING REVENUES 22,629.0 18,561.0 21,118.0 22,084.00
0 0 0
Other Income 1,819.00 1,934.00 1,782.00 1,751.00

TOTAL REVENUE 24,448.0 20,495.0 22,900.0 23,835.00

0 0 0
EXPENSES        
Operating And Direct Expenses 0 341 269 417

Changes In Inventories Of FG,WIP And Stock-In 239 -291 -64 498

Trade
Employee Benefit Expenses 760 689 905 776
Finance Costs 386 112 113 283
Depreciation And Amortisation Expenses 2,531.00 2,279.00 1,883.00 1,483.00
Other Expenses 9,958.00 8,975.00 9,338.00 8,121.00
TOTAL EXPENSES 13,874.0 12,105.0 12,444.0 11,578.00
0 0 0
PROFIT/LOSS BEFORE EXCEPTIONAL, 10,574.0 8,390.00 10,456.0 12,257.00
EXTRAORDINARY ITEMS AND TAX 0 0
Exceptional Items 0 0 0 240
PROFIT/LOSS BEFORE TAX 10,574.0 8,390.00 10,456.0 12,497.00
0 0
TAX EXPENSES-CONTINUED        
OPERATIONS
Current Tax 2,594.00 1,428.00 2,220.00 2,647.00

Deferred Tax 0 157 280 574

18
19
1.2.4 Capital Invested & Sources of funds
Capital Structure
Period Instrument Authorized Issued -PAIDUP-
Capital Capital

From-To   (Rs. cr) (Rs. cr) Shares (no’s) Face Capital

Value

2019-20 Equity Share 1000 845 4,225,000,000 2 845

2018-19 Equity Share 1000 845 4,225,000,000 2 845
2017-18 Equity Share 1000 845 4,225,000,000 2 845
2016-17 Equity Share 1000 846 4,230,000,000 2 846

Sources of funds
Particulars Mar-20 Mar-19 Mar-18

Sources of Funds :

Share Capital 845 845 845

Reserves Total 39465 32760 35087

Total Shareholders’ Funds 40310 33605 35932

20
 1.3 SOCIAL RESPONSIBILITY AND FUTURE PLANS OF THE
ORGANISATION
Women’s Empowerment
 Promotion and formation of Sakhi Self-help groups.
 Skill building of rural women in various trades.
 Promotion of Sakhi Production Centers.

Health, Water & Sanitation

 Organizing health and awareness camps.
 Providing financial support to needy/poor patients.
 Build/enhance/support hospital and health initiatives.
 Sanitation, drinking water facilities in rural areas.
 Initiatives on eradicating malnutrition and reducing child mortality.
 Company run hospitals.

Sports & Culture

 HZL Football Academy.
 Supporting sports tournaments for community.
 Promoting various aspects of folk and tribal cultures.
 Organizing/ supporting cultural events.
 Sponsorships for promotion of art and heritage.

Environment
 Support for cleaning of lakes, rivers, water treatment.
 Environment projects for beautification of lakes & city.
 Undertaking plantation and afforestation activities.
 Undertaking Safety initiatives for community.

21
Future plans
Hindustan Zinc plans to increase earnings through diversification
The company will have its cadmium metal unit up and running by the first quarter
With marketing plan for every new minor metal being chalked out, Hindustan Zinc, the countries
only integrated zinc producer, will have its cadmium metal unit up and running by the first
quarter of FY22.
“We have strong plans in the minor metal space, which will not just help the company in
diversification, but also yield incremental earnings amid converting the waste into wealth,” Arun
Misra, chief executive officer at Hindustan Zinc, told Business Standard.

Hindustan Zinc to invest Rs 14,000 cr in next 5 years to raise capacity

Hindustan Zinc (HZL), the country’s largest miner for this metal and part of the London-based
Vedanta group, has prepared an investment plan for $2 billion (Rs 14,000 crore) over the next
five years, to raise annual capacity to 1.5 million tonnes (mt.) from the current 0.8 mt.

Skill Development Projects

Skill Development Projects train local youth for appropriate job-related skills based on their
aptitude and education to improve their employability. During the year, six projects were
initiated exclusively for youth living around our operating sites in partnership with leading
organizations known for their commendable work in skill development.

22
1.3 Marketing
Segmentation
The Company's segments are Mining and smelting of zinc, lead and silver, and Wind energy.
The Company's operations include approximately five zinc-lead mines, over four zinc smelters, a
lead smelter, a zinc-lead smelter, approximately seven sulfuric acid plants, a silver refinery plant
and over six captive power plants in the state of Rajasthan.
The Company also has wind power plants in the States of Rajasthan, Gujarat, Karnataka, Tamil
Nadu and Maharashtra.

Targets
Hindustan Zinc Limited commits to reduce absolute Scope 1 and 2 GHG emissions 14% by 2026
from a 2016 base-year. Hindustan Zinc Limited also commits to reduce absolute Scope 3 GHG
emissions 20% by 2026 from a 2016 base-year. These Scope 3 emissions categories include:
purchased goods (e.g. cement, lime and soda ash, coal and inter-Organisation transportation of
materials); business travel; and upstream and downstream transportation and distribution.

Positioning
Hindustan Zinc has once again retained 1st in the Asia Pacific region in the ‘’Metal & Mining’’
sector in Dow Jones Sustainability Index 2020 for its sustained efforts towards sustainability and
environmental preservation. The company has also globally ranked 8th position overall and 3rd
in environment space by the index.

Marketing mix
Vedanta is one of the global leaders in the diversified natural resource industry. Vedanta
produces copper, zinc, aluminium, lead, silver, iron ore, oil and gas and commercial energy. All
these are the product mix in the company’s marketing mix. Currently Vedanta holds 79% of
market share in the zinc industry in India through Hindustan Zinc limited.

Advertising
Vedanta promote themselves through print media campaigns, Outdoor hoardings, Radio Jingle
and TV commercials. It targets different communities and states with different campaigns.
The stories came out brilliantly and were uploaded on YouTube for evaluation. Vedanta has a
solid social presence on Facebook, YouTube, Twitter and LinkedIn.

23
1.4 Human Resource (HR)

HUMAN RESOURSCE POLICIES

Human resource policies are systems of codified decisions, established by an organization, to
support administrative personnel functions, performance management, employee relations and
resource planning.
Each company has a different set of circumstances, and so develops an individual set of human
resource policies.

PURPOSES:
HR policies allow an organization to be clear with employees on:
• The nature of the organization
• What they should expect from the organization
• What the organization expects of them
• How policies and procedures work
• What is acceptable and unacceptable behavior?
• The consequences of unacceptable behavior
The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as The organization as its
commitments in relation to regulation and corporate governance. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment contracts
and collective bargaining agreements. The establishment of an HR Policy which sets out
obligations, standards of behavior and document displinary procedures, is now the standard
approach to meeting these obligations.
HR policies can also be very effective at supporting and building the desired organizational
culture. For example recruitment and retention policies might outline the way the organization
values a flexible workforce, compensation policies might support this by offering a 48/52 pay
option where employees can take an extra four the organizations holidays per year and receive
less pay across the year

24
RECRUITMENT
No recruitment activities take place at HZL. A work study is conducted first. Based on the results
of the work study the number of people required is estimated. The organization requirements are
communicated to the Mumbai office. Recruitment is done at the corporate office.

Recruitment Philosophies at HZL:

 The organization shall provide equal opportunities to all, without discrimination on
gender, religion and any other factors, which have no bearing on individual’s availability
to perform the role.
 The organization shall recruit candidates strictly on the basis of merit.
 The organization shall strive to ensure a geographical and cultural mix within the
organization.
 All letters of employment will be signed by HR heads of the respective business or group
HR as applicable.
 The organization would strive to avoid middle management recruitment and groom our
existing internal resources for these positions

TRAINING
Depending upon the categories, different training programs have been conducted by Hindustan
Zinc Limited. Workmen training program, contract labor training program, training for
executives, training program on leadership, training program on monitoring. Have been
conducted by Hindustan Zinc Limited. Various topics like self-development, team building, and
role of workers in the changing scenario, safety, health and hygiene are the prominent topics
have been covered in this training program.

25
SECTION – 2

26
2.1 PRODUCTION

2.1.1 Organization’s location and its issues for production

The zinc industry is experiencing some fundamental changes in terms of structure, markets,
regulatory and expectations from key stakeholders. What are the zinc Industry’s response to
these key changes and challenges? This paper looks at where the Industry has come from, where
it is today and the developments that will have an impact on the Industry in the future.
The supply-demand parameters are continuing to evolve. Supply changes include the depletion
of key zinc resources and the geographical shifts for both mine and refined metal supply.
Markets are also shifting in terms of both geographical and end-uses. Growth rates in various
geographical markets vary and stronger growth in countries such as China, India and Brazil are
having an impact.
As well, some current markets are under threat from competing materials and new zinc products
and markets are being developed that could have a significant impact on zinc demand.
Environmental regulatory and sustainability issues continue to increase globally. Some new
regulatory issues threaten the use of zinc or impact on increasing operational costs for mines and
refineries. Issues include water and sediment regulations, REACH, and the new concentrate
shipping rules (IMO).
In summary, this paper will illustrate a number of key aspects concerning the zinc industry
including market dynamics, key production trends and regulatory issues. It will provide
examples as to how the Industry is responding to these challenges and threats to zinc by
highlighting the new developments in the zinc industry.

27
2.1.2 Plant Layout

THERMAL POWER PLANT

A Thermal Power Station comprises all of the equipment and a subsystem

Required to produce electricity by using a steam generating boiler fired with fossil fuels or bio
fuels to drive an electrical generator. Some prefer to use the term ENERGY CENTER because
such facilities convert forms of energy, like nuclear energy, gravitational potential energy or heat
energy (derived from the combustion of fuel) into electrical energy. However, POWER PLANT
is the most common term in the United States; While POWER STATION prevails in many
Commonwealth countries and especially in the United Kingdom. Such power stations are most
usually constructed on a very large scale and designed for continuous operation. Working Layout
of a simplified thermal power plant the plant is based on the Modified Rankine Cycle. The Rankine
cycle is a thermodynamic cycle which converts heat into work. The heat is supplied externally to
a closed loop, which usually uses water as the working fluid. The Rankine cycle is sometimes
referred to as a practical Carnot cycle as, when an efficient turbine is used, the Temperature –
Entropy (TS) diagram will begin to resemble the Carnot cycle. The main difference is that a pump
is used to pressurize liquid instead of gas. This cycle generates about 80% of all electric power
used throughout the world, including virtually all solar thermal, biomass, coal and nuclear power
plants.

28
 Rankine cycle
Process 1-2:
The working fluid is pumped from low to high pressure. As the fluid is a Liquid at this stage,
the pump requires little input energy.

Process 2-3:
The high pressure liquid enters a boiler where it is heated at constant pressure by an external
heat source to become a dry saturated vapour. The input energy required can be easily
calculated using mollies diagram or h-s Chart or enthalpy-entropy chart also known as
steam tables.

Process 3-4:
The dry saturated vapour expands through a turbine, generating power. This Decreases the
temperature and pressure of the vapour, and some condensation may occur. The output in this
process can be easily calculated using the Enthalpy-entropy chart or the steam tables.

Process 4-1
The wet Vapor then enters a condenser where it is condensed at a constant Pressure to
become a saturated liquid.

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Design of Crushing Plant

 A well-designed plant layout balances the capital versus operating cost over
mine life. Buildings, infrastructure, and major equipment items, represent the
major cost elements of a crushing plant.
 The designer must prepare a layout that suits the design criteria, flowsheet
and selected equipment in the most economical possible configuration.
 It’s important to keep structural costs down, to design for ease of
maintenance and operation, and to combine best practices with advances in
fabrication and erection.
 Input from an experienced mining plant structural engineer can be very helpful.
 Crushing circuits and ancillaries have not changed a great deal over the
years, so “Keep It Simple” is still the best way to design a plant.
 Provisions must be made for the replacement of wear parts (e.g., install man-
doors on head chutes with flood lighting inside the chute.) Faster part
replacement means less downtime.

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2.1.3 Organisation structure of the production department

One of the most common ways in which businesses grow is by expanding the product mix.
If the organization is successful in expansion, several product lines may attain such high sales
volume that each product category or line may be a separate division. Large organizations
like Kirloskar, Hindustan Unilever, and Godrej have managed such expansion of product
lines effectively by creating separate departments or divisions for the various products.
Under product departmentation, a single manager, often referred to as the product manager, is
delegated authority over all activities required to produce and market that product.
The focus in the product departmentation, therefore, shifts on to the product and all the
activities related to the production and marketing of the product.
As against functions in the functional departmentation, basic products or services become the
primary or major departments in the product departmentation as could be seen in the
following figure.

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 CHAIRMAN

Managing
Director

Product A Product B Product C

Production Sales Production Sales

Engineering Accounting Engineering Accounting

Production Engineering Sales Accounting

32
2.1.4 Production Process

Sulfuric Acid

General Product  
Information
Product Name Sulphuric Acid
Other Name Oil of Vitriol
Molecular Formula H2SO4
Molar Mass 98.08 g/mol
Appearance Clear, colorless, odorless
oil
CAS Number 7664-93-9

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Specifications (IS 266 – 1993)  

Total Acidity 98.0 % min

Residue on Ignition 0.2% max
Iron as Fe 0.05% max
Lead as Pb 0.005% max
Arsenic as 0.004% max

Specifications (IS 266 – 1993)  

Density and phase 1.84 g/cm3, liquid

Solubility in water Fully miscible
(Exothermic)

Melting point 337°C (610 K)

pKa -3.0 1.99
Viscosity 26.7 cP at 20°C

34
Zinc

Zinc is extracted from the purified zinc sulfate solution by electro winning, which is a
specialized form of electrolysis.
The process works by passing an electric current through the solution in a series of cells. This
causes the zinc to deposit on the cathodes (aluminum sheets) and oxygen to form at the
anodes.
Sulfuric acid is also formed in the process and reused in the leaching process. Every 24 to 48
hours, each cell is shut down, the zinc-coated cathodes are removed and rinsed, and the zinc
is mechanically stripped from the aluminum plates.
Electrolytic zinc smelters contain as many as several hundred cells. A portion of the electrical
energy is converted into heat, which increases the temperature of the electrolyte.
Electrolytic cells operate at temperature ranges from 30 to 35 °C (86 to 95 °F) and at
atmospheric pressure. A portion of the electrolyte is continuously circulated through the
cooling towers both to cool and concentrate the electrolyte through evaporation of water.
The cooled and concentrated electrolyte is then recycled to the cells. This process accounts
for approximately one-third of all the energy usage when smelting zinc.

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2.1.5 Capacity Planning

Rajpura Dariba:
Location : Rajpura Dariba, Rajasthan, India
Mining Type : Underground
Mining Method : Vertical Crater Retreat and Blast hole stopping
Products : Zinc Concentrate and Lead Concentrate
Ore Production 0.90 million tonnes per annum

Capacity :
Certifications : ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, SA

8000:2008 & 5S

Zawar, Rajasthan:
Location : Zawar, Rajasthan, India
Mining Type : Underground
Mining Method : Open Stopping
Products : Zinc Concentrate and Lead Concentrate
Ore Product 1.20 million tonnes per annum

Capacity :
Certifications : ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, SA

8000:2008 & 5S

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2.1.6 Raw-Material Procurement and purchase decision

Raw material consumption Raw materials consumed in our operations include bauxite (VAL-
Lanjigarh), copper ore/ concentrate (KCM, CMT& Sterlite Copper), zinc ore, lead ore (HZL,
ZI) and iron ore (Sesa Goa) besides associated mineral inputs, semi-manufactured and
packaging material. During the reporting period, 30 million MT of raw material, 3.2 million
MT of associate material, 16.88 million MT of semi-manufactured material were consumed.
Packaging material consumption is not significant for our operations.

Name of raw Name of Consumption of raw material per unit of

material Products output MT
During the previous During the current
financial year financial year
Lead concentrate Lead 1.80 2.12
Cathode/Ingot
Coal for lead Lead 0.16 0.16
smelter Cathode/Ingot
Coke for lead Lead 0.20 0.22
smelter Cathode/Ingot
Lead Silver Lead Not Used Not Used
Compound* Cathode/Ingot
Battery/Lead scrap Lead Not Used Not Used
and secondary* Cathode/Ingot
Lead dross and Lead 0.031 0.029
Lead bearing waste Cathode/Ingot
Lime Stone Lead 0.109 0.114
Cathode/Ingot
Iron Ore Lead 0.058 0.022
Cathode/Ingot

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2.1.7 Materials Handling
Material handling involves the movement, protection, storage and control of materials and
products throughout manufacturing, warehousing, distribution, consumption, and disposal.
We have a keen focus on the methods, mechanical equipment, systems, and related controls
used to achieve these functions efficiently, safely and cost effectively.

Material Handling Work Experience

HZL-HINDUSTAN ZINC LTD.- RAJASTHAN (Ongoing) +UTTRAKHAND

(Completed)
-Concentrate handling 1.0 Million M.T/Annum
-Dross Handling 0.10 Million M.T/Annum
-Jerofix Handling 0.10 Million M.T/Annum
-Cadmium +Other Cakes Handling 0.05 Million M.T/ Annum
-Sodium Handling 0.05 Million M.T/ Annum
-Lime Handling 0.05 Million M.T/ Annum
-Manganese Handling 0.05 Million M.T/ Annum
-Stores Material Handling 0.07 Million M.T/ Annum

STERLITE COPPER, VEDANTA LIMITED.-TAMIL NADU

-Copper Concentrate Handling 1.8 Million MT/Annum
-Rock Phosphate Handling 0.6 Million MT/Annum
-Gypsum Handling 1.5 Million MT/Annum
-Slag Handling 1.0 Million MT/Annum
-Quartz Handling 0.10 Million MT/Annum
-Pet Coke Handling 0.10 Million MT/Annum
-Iron Pellets Handling 0.10 Million MT/Annum

38
2.1.8 Stores Management
Rampura Agucha is a zinc and lead mine located on a massive sulphide deposit in
the Bhilwara district of Rajasthan, India. Rampura Agucha is located 220 km from Jaipur.
It is north of Bhilwara, and northwest of Shahpura. Rampura Agucha is 10 km southeast of
Gulabpura on NH 79.
The mine is owned by Hindustan Zinc Limited (HZL), and has the world's largest deposits of
zinc and lead.

39
2.1.9 ETP Practice
Air Environment
Control of SO2 Emission in Acid Plant
During operation of the smelter complex, the main emission source are SO 2 from stack
attached to Sulphuric Acid Plant. SO2 emission is restricted to 1.5 kg/tone of acid and acid
mist is controlled below 50 mg/Nm3 which conform to the stipulated regulatory norms.
Adequate stack height (105 m) has been provided. TGT Plant has been provided for
scrubbing of SO2 in tailing gas. SO2 is scrubbed with the help of calcine into ZnSO4.

Water Management
We have a long-term approach to water management that aims to improve our performance,
recognize the significance of water and contribute to sustainable water management. We
understand its importance and adopt best practices for making the judicious use of water and
conserve it.
Effluent generated from the Dariba smelter complex is treated in effluent treatment plant
(ETP) of capacity 9000 m3/day capacity of RO plant.

Waste Management
We focus on a ‘4R’ waste strategy – Reduce, Recycle, Reuse and Reclaim and ‘eco-friendly’
disposal of process residues. The solid wastes generated from the lead smelter.
Slag Yard with thick clay liner has been constructed in the plant premises for the proper
disposal of the waste for preventing the deterioration of the land and water environment.

Noise
In the Smelter noise is generated from waste heat recovery boiler, fans, compressors and
blowers. All equipment’s in the smelter have been designed / operated to have a noise level in
line with the regulatory requirements. Necessary acoustic enclosures have been provided to
limit noise levels within the norms.

40
Conclusion
It was just like a dream come true for me to pursue training in Hindustan zinc ltd. It was
really a learning experience for me to have a feel of different industrial aspects.
In this period I have learnt those things, which I could not get from books i.e., the practical
experience under the guidance of learned professionals.
Special thanks for my college and Hindustan Zinc Work.

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Bibliography
https://www.hzlindia.com/about-hzl/overview/
https://www.hzlindia.com/bussiness/products-2/products/
https://www.business-standard.com/article/companies/hindustan-zinc-to-invest-rs-14-000-cr-
in-next-5-years-to-raise-capacity-119100901419_1.html
https://www.moneycontrol.com/financials/hindustanzinc/balance-sheetVI/HZ

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