Slide 1: Hindustan Zinc Limited
Hindustan Zinc Limited World's largest integrated Zinc producer September 2012
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: World Class Mining Assets
World Class Mining Assets Rampura Agucha Mine Sindesar Khurd Mine Reserves: 69.3mt Resources: 41.1mt Reserves: 21.6mt Reserve Grade Zn: 13.7% Resources: 59.8mt Reserve Grade Pb: 1.9% Reserve Grade Zn: 4.5% Ore Production Capacity: Reserve Grade Pb: 2.7% 6.15mtpa Ore Production Capacity: 2.0mtpa Kaya
Slide 4: World Class Smelting and Power Assets
World Class Smelting and Power Assets Chanderiya Smelting Complex Pyrometallurgical Lead Zinc Smelter: Zinc Smelter Debari 105,000 tpa Zinc 35,000 tpa Lead Hydrometallurgical Zinc Smelter: 168 tpa Silver 88,000 tpa Zinc Hydrometallurgical Zinc Smelter: 420,000 tpa Zinc AusmeltT M Lead Smelter: 50,00
Slide 5: Resource Driven Growth
Resource Driven Growth Substantial Reserves & Resources base with 25+ years mine life Best-in-class assets and fully integrated operations Global cost leadership and high operating margins Resource driven growth strategy Superior FCF generation - EBITDA to FCF conversion of over 80% Expe
Slide 6: Exceptional Track Record
Exceptional Track Record Reserves & Ore Production Zn-Pb Metal Production Silver Production Year Resources (mt) Capacity (mt) Capacity (kt) Capacity (t) 2002 143.7 3.45 204 74 2012 332.3 10.25 1,064 518 Reserves & Resources more than doubled (mt) Mined metal (kt) - CAGR of around 13% FY 12 8.0 332.3
Slide 7: Near-term Priorities
Near-term Priorities Mined metal (MIC) production close to capacity Lead and Silver throughput close to 185kt and 500t capacity Brownfield exploration continues to be rewarding Finalize next phase of mining production growth Maintain cost leadership HZL Corporate Presentation (September 20
Slide 8: Cost Leadership
Cost Leadership Low cost base supported by – Refined Zinc – Lowest Quartile Cost Position Tier-I assets with high grades 5,000 and good mineralogy Zn Composite cost - c1 cash 4,000 Fully integrated operations cost ($/t) 3,000 Significant by-product credits 2,000 Captive Power plants 1,000 HZ
Slide 9: Growing Silver Portfolio
Growing Silver Portfolio Among the largest silver resources companies in the world. On track to become top 10 silver producers at 16moz driven by higher production & ore grade at SKM and improved metal recoveries across mines/smelters. Silver1 – Volume growth Global Silver Producers2 (moz) 47 Pr
Slide 10: Positive Market Outlook
Positive Market Outlook Demand – supply gap expected to widen on supply shortfall and robust consumption growth Consequently, Zinc prices projected to be in secular uptrend Sources of Future Zinc Mine Production1 (ktpa) 22000 Probable B Projects 20000 Probable A Projects 18000 16000 Possible Min
Slide 11: Community Engagement
Community Engagement Fostering Self-Reliance through Community RAJASTHAN Jaipur Development Reaching to more than half a million people in Ajmer Rajasthan Tonk Positively impacting lives of more than 55,000 RAM RAM RAM RAM RAM RAM families in 184 Villages in Rajasthan Pali Raj Samund Bhilw ara B
Slide 12: Green Initiatives
Green Initiatives Climate Change Management Leading wind power generator in India- ~274MW of installed wind power Registered 4 CDM projects with UNFCCC for utilizing waste heat, low calorific value gas and generating wind power 100,000 plantations on the occasion of 'World Environment Day- 5th
Slide 13: Exploration
EXPLORATION “Adding Value through discovery - using world’s best technology and experts Terry Barclay September 2012
Slide 14: Exploration Driving Growth
Exploration Driving Growth Increasing Reserves and Resources at existing mines Large-scale exploration program with pan-India activities driven by opportunity rather than location or commodity Pan-India RPs and PLs Aiming to discover world class Lead-Zinc Active project generation to identify
Slide 15: Major Exploration Techniques
Major Exploration Techniques DRILLING Brownfields – 45,000m Greenfields – 29,000m GEOPHYSICS 4,000 line kms - Ground Magnetics - Electromagnentics - Induced Polarisation DETAILED GEOLOGICAL MAPPING - 80 sq kms SOIL GEOCHEMISTRY - 20,000 samples Exploration Presentation (September 2012) 15
Slide 16: Rampura Agucha Mine
RAMPURA AGUCHA MINE 16
Slide 17: Overview
Overview Commissioned : 1991 Location : 225 km north of Udaipur (Rajasthan) Mining Lease Area : 1,200 Ha Reserves : 69.3 million tonnes Resources : 41.1 million tonnes Avg. reserves grade : 13.7% Zn, 1.9% Pb Ore Production capacity : 6.15mtpa Mining Method : Open Cast up to 372m, underground beyond
Slide 18: Consistent growth
Consistent growth Major Focus Areas: − Focused exploration to enhance the reserves & resources base − Operational efficiency improvement through continuous improvement initiatives − Continuous technological up- gradation − Utilization of HEMM at par with global benchmark RAM Presentation (Septembe
Slide 19: Isometric view
Isometric view Development ore from underground project – 2HFY13 Commercial production from underground project – FY14 Total ore production from open cast & underground - ~ 6.0mtpa RAM Presentation (September 2012) 19
Slide 20: Dariba Smelting Complex
DARIBA SMELTING COMPLEX 20
Slide 21: Overview
Overview Dariba Smelting Complex- Hydro Zinc smelter – 210,000 tpa Lead smelter – 100,000 tpa Captive Power – 160MW Captive mines in immediate vicinity- Rajpura Dariba Mine (Underground) Production capacity – 0.9mtpa Sindesar Khurd Mine (Underground) Production capacity – 2.0mtpa Zinc-Lead
Slide 22: Zinc Smelter - Overview
Zinc Smelter - Overview Technology- Hydro metallurgy (Roast, Leach & Electro-winning) Technology Supplier- Outotec Plant Capacity- 210,000 tpa Plant consists of- - Roaster and acid plant - Leaching and Purification - Cell House DSC Presentation (September 2012) 22
Slide 23: Lead Smelter - Overview
Lead Smelter - Overview Technology- SKS, Bottom blowing Technology Technology Supplier- ENFI, China Plant Capacity- 100,000 tpa Plant consists of- - SKS Furnace – Bottom blowing - Blast furnace - Electric arc furnace & Fuming furnace - Electro - refining DSC Presentation (September 2012) 23
Slide 24: Sindesar Khurd Mine
SINDESAR KHURD MINE 24
Slide 25: Overview
Overview Location : 82 km North-east of Udaipur Access to mine : Through two Ramps (5.5m wide x5.0m height) (4.3m wide x3.0m height) Method of working : Blast hole open stoping in upper block LHS with paste filling in lower block Ore hauling : Planned up to a depth of 400/450m through ramps; and bel
Slide 26: Accelerated Growth
Accelerated Growth Ore production capacity ramped-up to Mined metal (tonnes) - CAGR of around 82% 2.0mtpa from 0.3mtpa in 2006 Reserves & Resource base of 81.4mt with 417moz of Silver Most mechanized mine in India – − comparable to other world-class mines − track-less mining − largest capacity
Slide 27: Geotechnical Characteristics of Rock Mass
Geotechnical Characteristics of Rock Mass Rock mass at Sindesar Khurd is of high strength, has good rock mass quality and few joints There is little difference in rock mass conditions between footwall, ore-body and hang-wall SK rock mass is classified as good to very good There are no major
Slide 28: LVS of Sindesar Khurd Mine
LVS of Sindesar Khurd Mine Sindesar Khurd Presentation (September 2012) 28
Slide 29: Thank You
THANK YOU 29