Hindustan Zinc Ltd Becomes World’s 9th Largest Producer of Silver

Zinc and lead major, Hindustan Zinc Ltd, a part of Anil Agrawal-controlled Vedanta Group, became the world’s ninth largest silver producer in CY18 improving its ranking from last year’s eleventh, according to data provided by the Washington-based Silver Institute, a global body of all silver stakeholders from miners to consumers.

The institute said in its World Silver Survey 2019, released earlier this week that, “Silver output in Asia, in 2018, increased to 5,809 tons and the biggest growth was posted in India’s Hindustan Zinc.” While the company’s underground operations increased its mining output, better silver grades boosted silver production by 16% wrt 2017, to a record level of 19.6 Moz (610 tonnes) in CY 18.

With the increase in HZL’s production, the company becomes world’s 9th largest silver producer and India the world’s 12th largest. HZL CEO Sunil Duggal told Business Standard that, “The company has increased its production of silver manifold in the last fifteen years from 41 MT in FY 2002 to 679 MT in FY 2019. The company plans to produce 1000 tonnes of silver in the next two years and 1500 tonnes in the next 5-6 years.”

With production touching 1000 tonnes, the company will be counted amongst the top five global producers and when it achieves production levels of 1500 tonnes, it will become the world’s second largest silver producer after Fresnillo Plc.

Duggal explained that the company had been mining lead and a much higher quantity of silver could be recovered from lead than compared to zinc. “Going forward, we are modifying processes to increase higher silver recovery from zinc and also from waste. In some mines we have been able to recover upto 83% silver. The processes will also help improve recovery of zinc and lead from waste.”

Hindustan Zinc is the only integrated silver producer in India and produces about 95% of India’s primary silver. Last year, the silver refinery of Hindustan Zinc located at Pantnagar, in Uttarakhand, was also recognised by the London Bullion Market Association (LBMA) and was added to the ‘London Good Delivery’ list.

HZL sells a large chunk of silver it produces, directly to industrial users.

On futures plans for increasing mining which will also result in higher silver production, Duggal said that the company had successfully moved to underground mining, which was very significant achievement.

Source: PT

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