Hindustan Zinc to invest in two more zinc fumer plants

Hindustan Zinc, India's largest integrated zinc miner and world's second largest, will be investing another Rs 1000 crore to set up two more zinc fumer plants over the next two-three years. A zinc fumer plant extracts metal from waste products.

The company had invested Rs 570 crore in its first zinc fumer plant at Chanderiya Hydro-II plant in Rajasthan. This plant is expected to start by first quarter of FY19. The plant will help increase recovery of zinc to 97.5 per cent from 96.8 per cent (at present) and will push volumes of lead produced by 4,700 tonnes and silver by 33 tonnes per annum.

The two new fumer plants will be funded through internal accruals. Hindustan Zinc has an overall current capacity to produce about 825,000 tonnes of zinc; 180,000 tonnes of lead and about 500 tonnes of silver per year. As on December 31, 2016, the company's net cash and cash equivalents stand at Rs 25,319 crore.

In today’s trade the stock of Hind Zinc rose 5.5 per cent to touch the day's high of Rs 299.8. The stock is currently trading at Rs 293 compared to previous close of Rs 284.3.