An Overview of Hindustan Zinc Current Mining Operations & Upcoming Expansion ProjectsKabir Ghosh Associate Vice President (Projects) 1 Group Structure Vedanta Resources plc 79.4% Konkola Copper Mines plc 70.5% 29.5% Vedanta Aluminium Limited 60.6% Sterlite Industries (India) Limited 80.0% Madras Aluminum Company Limited 51.0% Sesa Goa Limited 51.0% Bharat Aluminum Company Limited 64.9% Hindustan Zinc Limited 100% Sterlite Energy Limited 100% Copper Mines of Tasmania Aluminum Copper Zinc Power Iron ore Call option to acquire Government of India’s 49% stake in BALCO exercised, mediation process underway Call option to acquire Government of India’s remaining 29.5% stake in HZL exercisable anytime after April 2007 2 Group Operations Zambia India Australia Rampura Agucha Mine Debari smelter Dariba and Zawar Mines ü Chanderiya smelters Korba smelter ü ü Konkola Deeps Mine KCM smelter and refinery Silvassa refinery ü Lanjigarh mine and refinery (VAL) Vizag smelter Jharsuguda Aluminum (VAL) and Commercial Power project SESA Goa ü ü ü MALCO Tuticorin smelter Mt. Lyell Mine Aluminum Copper Iron Ore Zinc Powerr Projects Under Development 3 ü Captive Power Plant and eco-friendly maximizing stake-holder value 4 . creating value.Hindustan Zinc – Vision & Mission VISION Be a world-class company. leveraging mineral resources and related core competencies MISSION ■ ■ ■ Be a globally lowest cost zinc producer. customer oriented. maintaining market leadership One million tonne Zinc-Lead metal capacity by 2010 Be innovative. HZL S.HZL Akhilesh Joshi CFO .Organization Kishore Kumar CEO .HZL Puneet Jagatramka COO .Copper & Zinc Sector Head Expan. Secy. Bajaj Expansion Projects Naveen Singhal .L. R. Pandwal Kabir Ghosh AVP 5 . Projects Jayakumar Janakraj Head Marketing . Mehta VP Chanderiya Location Head R K Bansal EOHS CSR Mehta GM Mines & Smelters Other Locations Unit Heads Exploration Don Macansh Finance Samir Bahl VP IT P K Nijhawan AVP Comp.VP Lead & Silver Business Prantik Dasgupta Head Human Resources H K. practices organization . External HSE audits are being done by agencies of international repute – PwC.supported by safety stewards Increased focus on the behavior based safety program of all employees Daily Safety performance review in unit meetings with total engagement of employees.46 3. E& Y. periodical independent reviews.07 ■ ■ ■ ■ ■ ■ ■ ■ Robust safety policy.S. regular training etc Equal focus on contract workmen’s safety Compulsory use of Personal Protective Equipment (PPE) including by contract workmen No cases of occupational health diseases 6 *Lost Time Injury Frequency Rate .C Proactive actions like analysis of near miss incidences. B.Safety 30 25 25 Nearly 50% reduction in LTIFR every year LTIFR* 20 15 10 5 0 FY 05 FY 06 FY 07 FY 08 11 5. 3% Ag Grade: 40 ppm (63 Moz) Ore Production Capacity: 1.2Mt Zinc Grade: 5.8% Lead Grade: 3.60 mtpa. Will increase to 1.96 Mt Resources: 35.6%.1.Mining Assets Rajpura Dariba Mine Lead-Zinc Ore R&R: Reserves: 7.7% Ag Grade: 82 ppm (65 Moz) Ore Production Capacity: 0.5 mtpa Zawar Mining Complex Lead-Zinc R&R: Reserves 7. Zn.4% Lead Grade: 2.9 Mt Zinc Grade: 4. Will increase to 6. Will increase to 0. Grade: 10.3 mtpa.9 mtpa Rampura Agucha Mine Lead-Zinc Ore R&R: Reserves: 63.6 Mt Resources: 43.6% Lead Grade: 1.3 mtpa Capacity Sindesar Khurd Mine Lead-Zinc Ore R&R: Reserves: 1.0 mtpa.6 Mt Zinc Grade: 6.8 Mt Zinc Grade: 13.7% Pb 39 ppm Ag (11 Moz) 0.01 Mt.8% Ag Grade: 215 ppm (257 Moz) Ore Production Capacity: 0.2 mtpa CPP: 80 MW 7 .1 Mt Resources: 17.0 mtpa Kayar Mine Mine Kayar Resources: 9.9% Lead Grade: 2.2 Mt Resources: 41.0% Ag Grade: 63 ppm (208 Moz) Ore Production Capacity: 5. Three pronged approach ■ In mine exploration ■ Near mine exploration ■ Greenfield exploration (area applied in India – zinc rich belt) 232.3 230 Million tonnes 180 130 80 30 R es erves 146.6 164.4 million tonnes .8 209.3 R es ourc es 177.Resource Development HZL R&R .5 million tonnes of zinc-lead & 620 Moz of silver* ■ Rampura Agucha mine achieves landmark of crossing 100 million tonnes of R&R 8 Overall R & R increased by 115 million tonnes . pre-depletion of 26.4 143.7 87 57 FY 2003 92 54 FY 2004 98 109 133 152 67 FY 2005 69 FY 2006 77 FY 2007 80 FY 2008 ■ Metal content .27. 50 mtpa from 0.000 tonnes Lead Smelter at Rajpura Dariba 350 tonnes Silver Refinery at Uttaranchal 80 X 2 MW Captive Power Plant at Rajpura Dariba Sindesar Khurd Mine expansion to 1.Mission – One Million Ton Zinc/Lead – Capacity Zinc Zinc – Expansion Lead Lead– Expansion Phase III Project capex: US $ 900 million ■ ■ ■ ■ ■ 210.000 tonnes Hydro Zinc Smelter at Rajpura Dariba 100.3 mtpa ■ ■ .0 mtpa from 5.30 mtpa Rampura Agucha Mine expansion to 6.0 mtpa Opening of a new mine at Kayar with an initial capacity 9 of 0. 00 1.00 Time Line to Achieve Targeted Prod.07 Expanded Scenario Ore (Mt) 6.40 0.60 0.15 2.35 11.Expanded Scenario of Mines Mine RA Mine Zawar Mine RD Mine SK Mine Kayar Mine Total Current Production (2008-09) Ore (Mt) 5.50 1. (Years) 2010-11 2012-13 2011-12 2011-12 2013-14 10 .00 7.00 0.07 0.00 1. m.No. furnishing and winder commissioning Lateral Development Vertical Development (Raise and Winze) Total Size 30 Sq. 9-26 Sq. 9-25 Sq.m. m m m 0 3850 400 5575 300 1050 550 0 0 1900 158341 22980 214271 11 24275 28517 32022 37017 32660 2960 3910 5250 5620 4840 36350 42927 43132 46187 40100 .m. Development Particulars 1 2 3 Portal construction Decline Incline 15° Shaft Shinking.m.Development Volume – All Mines 08-09 S. 4-13 Sq. Unit m m m 09-10 10-11 11-12 12-13 13-14 Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 200 1125 200 7615 1000 0 9250 200 0 5310 0 3550 0 2600 400 29450 1200 4 5 6 5-6 m Dia. Present Scenario • World class deposit having resource & reserves of 107.4 Mt with 13.105 ton .165 mm.40 KL .0%Pb. 2. 1500 m and width varying from 20 to 120 m. 63g/t Ag. Strike length is approx. Production is 5 Mt with strip ratio of 1:7. ITH drills .9%Zn. Excavators . Dip is varying from 60 to 80 degree.6 to 12 cu . Equipments are Dumpers . Deposit is already explored up to 1065 m depth and the ore body is still open.Track dozers 410 HP -550 HP Water Sprinkler . 12 • • • • . Expansion Plan • • • Production will be increased from present level of 5 Mt to 6 Mt per annum by 2010-11 Underground development of the mine will start from 2009-10 and the underground operation will be commissioned by 2013-14 with rated production 2 Mt / annum. Opencast operation will continue up to 440 m depth and it is expected that from 2013-14 underground & opencast production will run simultaneously which will increase the open cast life. 13 . 3.5 cu yard LHDs. Mining methods are VRM & SLOS with post hydraulic filling Production is 0.59 %Zn.6 Mt per annum. Strike length is approx. Electric Haulage with Loco & 5 ton Granby Cars.70%Pb. Koepe winders for 6 ton counter balanced skips and 14 man/material cage. Equipments are :165 mm high pressure ITH drills. Access is through two shafts. Dip is varying from 600 to 700. • • • • • . 82g/t Ag. Deposit is already explored up to 800m depth and the ore body is still open. 1.• Present Scenario Deposit having resource reserves of 24. 1600 m and width varying from 6 to 30 m.68 Mt with 6. Expansion Plan • Production will be increased from present level of 0.15 Mt per annum by 2011-12 Development of the new block of main lode below ‘0’ mRL and East lode of the mine is in progress and production will commence by 2011-12 Lower level below “0” mRL will be accessed by ramp to facilitate ore transportation by LPDT up to existing dumping level. • • 15 .6Mt to 1. 5 cu yard LHDs.85%Zn.4Mt Equipments are :Drill jumbo. drill and personnel carrier. Deposit is already explored upto 800m depth and the ore body is still open. 3. Access through a ramp and incline upto 200m depth Production is 0. ITH 16 • • • • • .79% Pb. 20 ton LPDTs.17Mt with 5.Present Scenario • Silver rich deposit having reserves/ resource of 37. Dip is varying from 450 to 800. 3. 215g/t Ag. Strike length is about 1300 m and width varying from 10 to 60m. Underground development of the mine is in progress. 17 . A shaft is planned to access the deeper levels. Electro hydraulic drills with other service equipments will be added to ramp up the development and production.0 Mt per annum by 2011-12. Development of an additional large size ramp from surface will be commenced from Jan 09.4 Mt to 2. Matching capacity beneficiation plant will be constructed at the site for beneficiation of ore and cater the requirement of fill for filling the mine voids. double boom jumbo. 15-20 ton LHD.Expansion Plan • • • • Production will be increased from present level of 0. 50/55t LPDTs. DTH (115mm).075 Mt of production & ore beneficiation planned from all the four mines during 2008-09 Main UG mining equipments . 1. Electro hydraulic Simba(76mm).• • • • • Present Scenario 4 operative underground mines Mochia. 2. Zawarmala & Baroi with a cumulative production capacity of 1. 18 Eletric locomotives 8 – 10 tons . Width of the deposits are varying from 5-50 m and dip varies from 40 – 80 degree. Pneumatic Simba(57mm).10 Mt with 4.LHD (2 & 3.3% Pb & 40g/t Ag.2 Mt/ year with one integrated beneficiation plant of matching capacity Deposits having reserve/resource of 49. Balaria.5 Cu Yd).40% Zn. LPDT (20 MT). The main activity includes infra structure extension of all the mines and introduction of higher capacity machines 19 . Surface exploration for depth extension of existing mines up 200 m below present explored depth. Also. partially / unexplored dolomite within the lease hold in progress to identify new mine prospects.5 Mt per annum by 2012-13. Planning for De-bottlenecking / capacity expansion under progress.Expansion Plan • • • Production is planned to be increased from present level of 1.075 Mt to 1. 9 kms from Ajmer town. Deposit having reserves/ resource of 9. 800 m consist of 12 minor & major ore lenses.Kayar Deposit • • This deposit is situated approx.01 Mt with 10. The main underground equipments will be 6 t LHD LPDT and electro hydraulic drills. 39g/t Ag.70%Pb. An underground mine is planned for Production capacity of 0. 1. 20 • • • • .3 Mt per annum. Strike length is approx. Deposit will be accessed through decline from surface & planned production will be attained by 2013-14.60 %Zn. PRODUCTIVITY IMPROVEMENT THROUGH TECHNOLOGICAL UPGRADATION 21 . Development & Drilling 300 Meter / Month / Face Development 250 200 150 100 50 08-09 09-10 10-11 11-12 12-13 Tonnage drilled / Hr 300 250 200 150 100 50 08-09 Drilling 09-10 10-11 11-12 12-13 22 . Size of Blast(Explo. Kg) Blasting & Mucking 2200 Blasting 170 0 12 0 0 70 0 200 08-09 300 09-10 10-11 11-12 12-13 Tonne / hour 2 50 200 150 10 0 50 Mucking 08-09 09-10 10-11 11-12 23 12-13 . Hoisting (shaft) & Hauling (Trucks) 4 50 TONNE / HOUR 400 3 50 300 2 50 200 150 10 0 Hoisting through shaft 08-09 09-10 10-11 11-12 12-13 13-14 To n n e / Km / Hr 300 2 50 200 150 10 0 50 Hauling through truck 08-09 09-10 10-11 11-12 24 12-13 . Back filling & Mining Descent Rate 10 0 % of Solids 90 80 70 60 50 Back filling 08-09 60 09-10 10-11 11-12 12-13 Meter / Year Descent Rate 50 40 30 20 10 08-09 09-10 HOISTING THROUGH SHAFT 10-11 11-12 12-13 25 . Underground Contribution Underground mining % 70 65 60 55 50 45 40 35 30 25 20 Underground contribution 08-09 09-10 10-11 11-12 12-13 13-14 Underground OMS 25 20 15 10 5 0 OMS 08-09 09-10 10-11 11-12 26 12-13 . 4. Production Drilling Mucking Hauling .Technological Advancement SN Activity 1. 5. 16-20 tons Locos 27 2. 50-60 tons LPDT. Present Target Shaft Sinking/ 20-25 m /month 100m/ month advance with Boring with hand held drill jumbo.10 ton held drill and LHD. 20-50 tons LPDT 2cu yd LHD Down the hole drills/ITH 3 – 6 ton LHD 20 tons LPDT & 8-10 tons locos Hydraulic top hammer drill 10-15 tons LHD.grab/ drill and manual Boring mucking Development 40-50 m/ month/ 150-200 m/month/face with face with hand double boom jumbo. JCB . 3. Technological Advancement SN 6. Explosive chargers. Hydraulic Fill Hand held stopper/ Pneumatic Simba Target Modern Koepe winder with Thyrister control. etc. 10. . Utility vehicles. Activity Hoisting Present Thyrister control with analogue controller. Filling Support Communi Telephones -cation Utility Services Safety 11. Leaky feeder or any other wireless system. 9. High density paste fill . underground 28 refuge chambers. Self rescuer. 8. Rock/cable bolter & short creting machine. 7. digital controller. Personal carrier. Activity Open Cast Dumpers Excavator Present 100 ton class 6 – 15 cu m Target 200-225 ton class 25 cu m 29 .Technological Advancement SN 12. 13. Equipment Forecast – HZL U/G Mines Requirement SN 1 2 3 4 Equipment 09-10 Single Boom Jumbo Double Boom Jumbo Rock Bolter/ Cable Bolter Short Creating Machine LHD a) 2 Cu Yd 5 b) 3.5 Cu Yd c) 6-8 Cu Yd LPDT 6 a) 20/30 Ton b) 50 Ton 3 4 5 1 4 6 2 7 2 1 3 5 3 2 6 2 1 2 2 2 3 5 2 2 2 4 2 2 2 10-11 2 3 1 2 11-12 1 3 0 0 12-13 1 1 1 0 13-14 1 1 0 0 Total 9 10 4 4 0 10 18 14 0 16 30 19 . Equipment Forecast .Opencast Requirement SN Equipment 09-10 1 2 3 4 5 6 Excavator Dumpers Drills Track Dozers Wheel Dozers Water Sprinklers 1 0 0 2 1 1 10-11 0 5 2 2 0 0 11-12 1 0 2 2 0 0 12-13 1 5 0 0 0 0 13-14 0 5 0 0 0 0 Total 3 15 4 6 1 1 31 . winding speed 6-8mts/sec All these winders will be required in 2012-13 & 2013-14 • Communication Two sets of underground wireless communication systems in underground may be leaky feeder or equivalent to that for S K Mine & Rampura Agucha underground by the year 2011-12 32 . pay load 6000 kgs. Cage capacity 35-40 persons.Other Requirements • Winders a) Two no of koepe winders for skip hoisting from a depth of approx 800 mts @ of 400 tons/hour b) Two nos cage winder for hoisting man and material from a depth of 800 mts. ball mills with high volume floatation cell and high rate thickeners Filling Plant • Modular type paste fill plant able to supply fill @ of 200 cu m per hour at two location one at S K Mine and another at Rampura Agucha Mine in 2012-13 & in 2014-15.Contd… Beneficiation Plant • One new 2 Mtpa beneficiation plant for S K Mine along with primary . secondary & tertiary crusher. 33 . Explosives : Overview • • 50 40 30 20 10 0 Current spend base on explosives and accessories is about Rs 80 cr Likely to go over Rs 130 cr by 2010 45 Current Planned: 2010 19 11 4 16 8 34 Bulk-SME(K MT) Cartridge (K MT) NONEL/D-Cord (KM) . 375 D.m 95 t 2 1 8 9 6 2 4 25983 26816 5983 19604 9986 3408 NA 17803 2000 5514 1443 1976 5386 20000 10534 678 847 1 Addition 1 Addition 2 Addition Dumpers Repalcement with higher capacity Replacement 777D-II RECP Sandvik (DI-600) Atlas (ROC L-8) Sandvik (DI-300) Drills 2 Repalcement 2 Repalcement 165 mm dia 2 1 1 Pre-split Drills 115mm dia Atlas (ROC L-6) D.Equipment Forecast Equipment RH-120 E Excavator capacty 15 cu.m 6.1 cu.355 1 1 4 1 2 1 1 Track Dozer 2 Replacement 2 Replacement Wheel Dozer Motor Grader Water Sprinkler Tyre Handler Already Ordered Future Replacement 35 .m Nos. 3 HMR as on 21145 9316 NA 09-10 10-11 Year 11-12 12-13 Replacement 13-14 1 Addition Replacement with 1 no excavator RH-90C PC-1250C 10 cu.