HZL to become largest integrated lead zinc producer by 2010
It is reported that Hindustan Zinc Limited is set to become the largest integrated producer of lead zinc by 2010 even as global zinc and lead prices are moving only sideways. According to the International Lead & Zinc Study Group, supply of zinc in coming years is likely to be more than global consumption.
Mr MS Mehta CEO of HZL said that the market for Hindustan Zinc Limited's products is global and therefore it really goes by the dictum think globally and acts locally.
Mr Mehta said that "All these predictions are based on estimation that new plants, new mining capacity will come up as scheduled and none of the existing mines will close down. But we also know that a significant component of mining capacity is working in very high cost level operations. If the price drops below USD 2000, 10% to 15% capacity may also get knocked out."
HZL has dynamically increased its exploration focus through a team of 40 geologists employing the latest geophysical, geochemical and GIS technologies and high speed deep drilling equipment. This has resulted in an addition of 110.7 million tonnes of reserves and resources, before depletion of 22.1 million tonnes, in the period from April 2003 to March 2008.
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