India’s Hindustan Zinc Ltd. reported quarter mined metal production of more than 232,000 metric tons (mt), a year-on-year increase of 42%. The company said its saleable zinc, lead and silver metal production was up by 35%, 27% and 33%, respectively, for the same period.
“The zinc price has held up better in an environment of retreating base metal prices,” said Agnivesh Agarwal, chairman, Hindustan Zinc.
The increase in mined metal production was driven primarily by higher ore production from Rampura Agucha, Kayad and Sindesar Khurd mines. Hindustan’s cost of production for zinc metal before royalty during the quarter was $802/mt, which is 14% lower in Rupee and 19% lower in U.S. dollar terms from a year ago.
As far as expansion projects, the company reported that the Rampura Agucha and Sindesar Khurd shaft projects were progressing well. The North ventilation shaft was recently completed at Rampura Agucha. Pre-stripping for further deepening of the open pit at Rampura Agucha is under way. The company said the expansion projects would not affect the overall production plan at Rampura Agucha.
The shaft project at Sindesar Khurd continues ahead of schedule. Two auxiliary lenses, apart from the main ore body, are being developed as separate production centers, which will increase production capacity from 2 million mt to 3 million mt by year end. The company also said the Kayad mine ramp up is on track and expected to achieve 1 million mt production capacity by year end.