FINANCIAL CHRONICLE - THE SILVER MINING BY SUNIL DUGGAL - CEO, HZL

If we add the amount of solar energy that is absorbed by the earth's atmosphere, land and oceans every year, we end up with approximately 3,850,000 EJ (exajoules or 10^18 joules). To put it in more understandable terms, this amount of energy is equivalent to: 2.7 million earthquakes of the same size as the Tohoku earthquake in Japan (2011); 40,000 times the total energy consumption in the United States; 8,000 times the total consumption in the whole world; 40 per cent of the energy that is required to heat the entire volume of water we have on earth by 1°Celsius. Every square metre of our planet receives around 1,366 watts of direct solar radiation.
In America, one solar panel system is installed every four minutes. NASA is currently working on a solar-powered aircraft.
Globally, California is home to the largest solar power plant in the world, located in the Mojave Desert. It spans 1,000 acres. California also dominates the solar power market, with a market share of 44 per cent in 2015. California, Arizona, and North Carolina are the top three US states for solar power, based on the amount of cumulative solar electric capacity installed. There are now nine states in the US where 100 per cent of new electrical energy comes from solar power. In terms of employment generation, more than 200,000 Americans currently work in the solar power industry. That number is expected to climb to 420,000 by 2020.
India is currently 100 per cent importer of solar parts where Silver is used. The major countries from where it is being imported are China and Japan. Taking forward the vision of our prime minister Narendra Modi to produce 100 GW of solar energy by 2022, and producing solar parts, India's consumption of Silver will be all set to increase by about 4,000 tonnes. It is also true that 40 tonnes of Silver is required to produce panels that would generate 1GW of solar power.
Technically speaking, Silver is a primary ingredient in photovoltaic cells, and 90 per cent of crystalline silicon photovoltaic cells use Silver paste. When sunlight hits the silicon cell it generates electrons. The Silver used in the cell works as a conductor to collect these electrons in order to form a useful electric current. The Silver then transports the electricity out of the cell so that it can be used. Further, the conductive nature of Silver enhances the reflection of the sunlight to improve the energy that is collected. Therefore, if it wasn't for Silver, solar wouldn't be as efficient in turning sunlight into energy.

But, where is the Silver in India. Have we explored Silver in India? Silver is giving jitters to the increasing solar demand in India. Silver is found in zinc-lead mines and there has been no new large mine explored in India in over a decade. Exploring a mine takes its own time and developing a mine takes 3-5 years. Either we rely on imports or we develop our own resources is the decision that India needs to take.
India is the largest consumer and importer of Silver in the world, having a share of about 21 per cent of global Silver demand though it produces only 6-8 per cent of its consumption requirement. The current Silver import in India is touching 7,000 tonnes and here in India we produce close to 500 tonnes which maximum can be extended to 1,000 tonnes in coming 3-5 years, with expansion of Hindustan Zinc mines that produces over 95 per cent of India's Silver. Globally, the highest usage of Silver is industrial fabrication (55 per cent), followed by coins and bars (20 per cent) and jewellery (20 per cent) and lastly Silverware (5 per cent). In India, the highest usage of Silver is jewellery (38 per cent), followed by coins and bars (22 per cent) and lastly Silverware (20 per cent) and industrial fabrication (20 per cent), as per World Silver Institute.
As compared to the world, India has been slow towards utilisation of Silver for industrial usage with mere 20 per cent, as compared to global usage. Though we are growing in terms of utilisation of Silver in jewellery and Silverware, the real boost will come with digital India and development of domestic solar energy market where Silver will be used.
Silver's industrial role is much more than that of gold's and it is for this reason that a shortage of Silver will have higher negative implications than there would be if there was a shortage of Gold. 

HINDUSTAN ZINC’S TRANSITION TO A FULLY UNDER-GROUND MINING COMPANY BY FY 2019

India's only and the world's second largest integrated zinc producing company, Hindustan Zinc, is all set to become a fully underground mining company by year 2019.
Rampura Agucha Mine of Hindustan Zinc, the world's second largest zinc producing mine and responsible for 75% of company's total output, is gradually moving from open-cast to underground mine operations. The company is expected to close the open-cast mining operations by 2019 and would operate only under-ground mine. The 955 meters depth shaft sinking work at Rampura Agucha Mine has already been completed and commissioned.
In the year 2016-17, Rampura Agucha mine produced ore both from open-cast and under-ground mine. The contribution of open-cast was 3.3 million tonnes and under-ground as 1.4 million tonnes. Rampura Agucha mine ore production capacity is expected to reach about 4.50 million tonnes by 2019-20. The ore production capacity of Rampura Agucha mine as on 31st March 2017 stands as 6.15 million tonnes.
According to the metals and mining analyst, the grade at Rampura Agucha open cast mine is 13 percent and the under-ground mine would be also similar. Globally the average grade varies between 3-6 percent and that gives a huge advantage to Hindustan Zinc in global market.  Even the cost of production of Hindustan Zinc, which is about $ 800 per tonne, is 30 percent lower than that of the global peers.
Hindustan Zinc is on its way towards transition to a fully underground mining company with next generation of technology. This transition will be completed either by the end of current financial year or maximum by early next year. Certainly the production level at open cast mine are much easier when compared to underground mine and initially we are expecting the production levels to be slightly challenging at Rampura Agucha. But since they are ramping up all the other mines, they are well placed to meet the requirements of their smelters and also the production levels. Gradually, the production level at Rampura Agucha under-ground mine will pick-up and will further support the expansion plans.
This transition is part of series of systematic decision and this is the reason they have already speeded up expansion in our other underground mines to ensure that the overall mine production is not impacted.
By 2019-20, Hindustan Zinc will be expanding its all mines to meet the growing demand. Rajpura Dariba mine is being expanded to 1.5 million tonnes from the current capacity of 0.9 million tonnes. The silver rich Sindesar Khurd mine is being expanded from the current capacity of 4 million tonnes to 6 million tonnes. Zawar mines are all set to reach the capacity of 2.5 million tonnes from 1.8 million tonnes in the current financial year and subsequently to 4.5 million tonnes in next 3 years. The company's Kayad mine in Ajmer has ore production capacity of 1 million tonnes and efforts are being made to expand this mine as well.
The shaft sinking work has been completed at Sindesar Khurd mine which has reached the depth of 1050 meters and a new mill of 1.5 mtpa capacity has already been commissioned last year to support the enhanced ore production at Sindesar Khurd mine. The Company is also setting up Fumer Plant to further improve recovery of metals from the slag.
Though ore production capacity of all the mines put together is 12.20 mtpa, the actual ore production in the year 2016-17 was 11.87 million tonnes. The company is aiming to expand the mine production levels to 13.10 mtpa in the current financial year and reaching to 17.50 mtpa in the next three years, i.e. by FY 2020.
Since disinvested in 2002, Hindustan Zinc has invested over USD 3 Billion towards its 4 phases of expansion programs to reach to metal production capacity of 1 million tonne and within three years the company is expected to expand the capacity of metal production to 1.2 million tonne an eventually to 1.5 million tonnes in the next 5 years.
The global zinc market is expected to grow at a CAGR of 3.96% during the period 2017-2021. The zinc consumption in India is too increasing every year and eventually the issue of corrosion in the new sectors like automobiles, railways, use of galvanised re-bars in coastal structures, electricity distribution network will also drive zinc consumption in India.
Agriculture is another area where zinc can improve the yield of crops since a large agriculture land in India is suffering from zinc deficiency which is not only impacting the mineral value in crops but also affected the overall production.
Hindustan Zinc is counted amongst the top 50 companies in all sectors in India. The company has high quality of grades of ore but also keeps tight control on the costs, best in class technology and substantial cash accruals to meet expansion plans.

HINDU BUSINESS LINE - WE NEED TO ‘GALVANISE’ THE ECONOMY

9^th August 2017 – Opinion Page

Galvanised steel will bolster rail safety. Cars and infra projects will suffer fewer corrosion and maintenance issues.

SUNIL DUGGAL  

Consumption of zinc has grown in India over time, helping sectors such as infrastructure, cosmetics, medicines, paints, rubber, surgical tools, plastics, textiles, soaps and batteries expand and grow. But corrosion losses impact India’s GDP considerably every year.

This can be checked if we promote galvanisation (cover metals with zinc) in construction. Western countries mandate the use of galvanising for steel structures used in building bridges, highways, airports, metro stations, railway stations, etc.

Zinc is the fourth most widely consumed metal in the world — after iron, aluminium and copper. Almost 50 per cent of the zinc mined across the world is used for galvanising, 17 per cent for zinc alloying, 17 per cent for brass and bronze making, 6 per cent in zinc semi-manufactures, 6 per cent in chemicals, and 4 per cent for other miscellaneous purposes.

India’s consumption of zinc is rising day by day as new sectors are being explored to take advantage of zinc. But its potential remains unrealised..

Coastal infrastructure

Use of Galvanised rebars in construction near coastal areas: Corrosion is one of the major reasons for deterioration of concrete structures built near coastal areas. Coastal salts coupled with humidity can corrode exposed metal surfaces and penetrate any opening in the building.

Coastal infrastructure within a range of 5 km is more prone to corrosions and becomes progressively worse closer to the marine source.

According to a study by the American Institute of Architects, it is essential to use hot dip galvanised steel to make such coastal infrastructure-decay resistant. Galvanised steel provides the much needed strength to rebars.

Auto sector

Use of galvanised car bodies: Globally there has been a discrepancy in using galvanised car bodies. Indian car manufacturers use about 3 per cent galvanised steel for cars manufactured and sold in the domestic market. However, they over 70 per cent galvanised steel in exports to markets in Europe, Asia and Africa.

Indian consumers don’t demand galvanised steel due to lack of awareness on the long term benefits of galvanised vehicles. 

Car makers in Europe, North America, Korea and Japan have been using galvanised steel for car body panels for decades and provide anti-corrosion and perforation warranties for a minimum of 10 years.

In India, the customers are advised to pay for extra coatings to protect the body of the car after purchase. More than 60 per cent of the cars in India have surface rust which reduces steel strength and the life of the car, leading to safety hazard.

Steel has been used to make automobiles since the early 1900s but corrosion resistance features became standard in vehicles beginning in the early 1980s when Japanese cars gained entrance to the US market.

Globally, the annual consumption of zinc for auto-bodies today is roughly 120,000 tonnes. There is almost no galvanised steel on Chinese-made vehicles except for exports from China by Volkswagen, General Motors and others which also means that 20 million cars in China are not using galvanised steel.

Globally, galvanised steel car bodies have been shown to experience minimal corrosion attack which protects the structural integrity and safety of the vehicle, improves the resale value, provides consumer protection due to anticipated warranty improvements by the car companies, lowers maintenance costs of under-body and structural components due to the use of zinc coated steel, and saves consumers the costs of after-market anti-corrosion treatments and annual inspections.

The railways

Corrosion of rails and fish plates: Galvanising of railway tracks would not only be a significant initiative towards safety of trains but would also give more life to the railway tracks. India’s rail tracks, spanning over 125,000 km, happen to be the world’s third largest. The annual loss due to pre-replacement of corroded rails is about Rs 440 crore. Many accidents have been attributed to fishplates. Not just the fish-plates, even the bolts need protection, protection from corrosion.

Experts have estimated losses of almost 4 per cent of GDP per year on account of corrosion which may be avoided if the railway tracks are galvanised. One of the significant aspects of railway track maintenance is the detection of corrosion and the replacement of corroded rails.

Corrosion reduces the life of rails to nearly half its expected life. The rails have a life of 800 gross million tonnes which works to approximately 12-13 years under normal traffic conditions in India. The shorter life of rails resulting from absence of galvanising increases track maintenance workload. Corrosion increases the pace of rails replacement and interferes with normal railway movement causing inconvenience to passengers and freight movers and revenue losses to the Railways. 

According to a site inspection carried out by the Commissioner of Railway Safety (eastern circle) PK Acharya, rusted rails could have caused derailment near Kanpur that left 146 people dead and over 200 injured. The International Zinc Association advocates that Indian Railways require corrosion- free tracks in case India is considering Bullet Trains.

Energy sector

Zinc powers the electricity distribution network: Since the advent of high voltage lines, hot-dip galvanised steel has been used in the electric utility market. Whether in a generation facility, substation, lattice tower, or renewable energy components, galvanised steel has been a backbone of any global economy.

According to a study by the American Iron and Steel Institute, close to 1 million steel distribution poles have been installed in the United States since 1998 and are being used by more than 600 US electric utilities. India might be having more poles but how many are galvanised is still to be assessed.

When India is looking ahead providing electricity in every village and progressively moving towards Smart Cities project, Digital India and Make in India, the very basis of infrastructure, the power transmission, needs to be protected for many years.

If these four sectors mandate to address the issue of corrosion and related safety, it would lead to not just efficiency and savings worth millions of dollars for the Indian economy, but also build long-lasting infrastructure. 

The writer is CEO of Hindustan Zinc.

Vedanta CSR beneficiaries reach 2.5 million covering 550 villages

HINDUSTAN ZINC EFFORTS SAVE 'CHOTU LAL' FROM SCOLIOSIS

Hindustan Zinc, a Vedanta Group company, came for instant help of Chotu Lal Gurjar, a 15 year boy from Rajasthan, who was suffering from Adolescent Idiopathic Scoliosis with curvature of 85 degrees. As a result, his body was completely bent on one side and had developed a large hump with severe difficulty in breathing. Chotu Lal was advised surgery, with total cost ranging Rs. 450,000. The cost was much higher for this poor child, who is a son of a farmer in Bhilwara, Rajasthan. Further there was also a fear of paralysis.

Scoliosis (means abnormal curvature of spine leading to hump on the back) is a common problem in children especially of the lower socio-economic group. Scoliosis correction surgery is a complex operation done in very few centers in India like Delhi and Mumbai because it requires highly trained surgical team and tertiary level infrastructure. It is an expensive surgery requiring costly implants, intensive care and world class operating rooms. GBH American Hospital, Udaipur, Rajasthan and Save a Child Charitable trust (SACT) performs these complicated surgeries in Rajasthan.

Chotu Lal approached Hindustan Zinc, through District Collector Bhilwara, and the company immediately agreed to bear total expenses of the surgery and donated Rs.250,000 rupees to Save A Child Trust (SACT). The balance expenditure of Rs. 200,000 was borne by GBH American Hospital and SACT.

Chotu was operated for 14-15 hours on 31st August 2010 by Dr Chirayu, Dr Sood and team at American Hospital, Udaipur. The surgery was conducted successfully. 20 screws and a rod has been implanted on Chotu's back and now his bend is only 25 degree, which is like any normal human being. Now Chotu can stand straight and has no breathing problem. After 2 weeks, he walks back home with a straight spine and lovely smile.

Hindustan Zinc has given Chotu a new lease of life.

Vedanta brings ray of hope for cancer patients in India

Vedanta is building a 360 bedded " Vedanta Cancer Hospital and Research Centre" in Raipur, Chattisgarh. This hospital is coming at a cost of Rs. 350 crore with 20% bed space for BPL.

Going by the reports of Cancer Foundation of India, it is estimated that at any given point of time there are 2.0 to 2.5 million cancer cases requiring cancer treatment in India and there is an increment of 10,000 new cancer cases ever year.

WHO report categorically mentions Cancer as a leading cause of death worldwide.

The disease accounted for 7.4 million deaths, or around 13% of all deaths worldwide, in 2004. More than 70% of all cancer deaths occurred in low and middle-income countries. Deaths from cancer worldwide are projected to continue rising, with an estimated 12 million deaths in 2030. As per WHO’s prediction by the year 2010 itself, cancer will overtake cardiac diseases and become the No. 1 killer.

It is well documented that more than 70% of disease burden is related to life-style factors such as food & beverage practices, personal habits, infections, tobacco consumption to name a few. In addition, urbanization, industrialization and increasing life-span are also known to influence the cancer pattern globally.

Taking the note of gravity of situation in India, Vedanta Group laid the foundation of “Vedanta Cancer Hospital and Research Centre” in August 2007. This 360 bedded hospital is being built on 50 acre of land with an estimated cost of over Rs. 350 crore. Once fully operational, it will employ about 125 doctors and 300 nurses besides a number of para-medical and non medical staff.

Taking special care for the under-privileged, Vedanta will be keeping 20% of the bed space for BPL families. The hospital is being built on self-sustainable basis with special concession and facilities to poor families.

Assessing the magnitude of rising cases, Vedanta Group has already started working towards the cause. Voluntary camps are being organized in remote villages and special mobile vans equipped with ultra modern equipments are screening the suspected patients on regular basis. So far about 40 such camps have been conducted in 500 villages covering 160,000 people in 28,000 house-holds. In these camps 3,125 cases were registered (May 2010) out of which 516 were suspected cases and 155 cases were confirmed cancer cases. Out of 155, 60 patients were identified for further treatment. 22 surgeries have been performed at BALCO Hospital, Chattisgarh, and build by BALCO, a Vedanta group company in aluminium business in Chattisgarh.

The cancer hospital project would be completed in two phases. The first phase of the Vedanta Cancer Hospital Project at Raipur is slated for completion in November 2011. In this Phase-I the hospital would become operative with 100 beds. Vedanta has already underlined capex expenditure of Rs. 200 crore for this year.

“Vedanta Cancer Hospital and Research Centre” will also have five satellite centres, located at strategic locations covering 16 districts of Chattisgarh to cover a large number people for screening and for further treatment.

The “Vedanta Cancer Hospital and Research Centre” will provide state-of-the-art facilities to Maharashtra, Andhra Pradesh, Madhya Pradesh, and Orissa besides Chattisgarh.

In the first phase, the hospital is expected to look after 4,000 - 6,000 patients and once it becomes fully operational it is expected to cater to about 15,000 patients.

As per the data of WHO, the cancer problem needs a focused and dedicated attention. “Vedanta Cancer Hospital and Research Centre” will come up as a big relief for the treatment of cancer and provide state-of-the-art treatment to people at large.

Vedanta - Empowering Communities in Rural India Through CSR

“CSR is close to my heart and we are working day and night for the benefit of the under-privileged children in the country. Through Computer education, mid-day meal and Vedanta Bal Chetna Anganwadi Project, we would be touching the lives of about 2.5 million under-privileged children in coming 3-4 years time.” Shri Anil Agarwal, Chairman, Vedanta Group.

The group is currently touching the lives of over 2.5 million people spread across more than 425 villages. With a mission to impact the lives of another 1.6 million under-privileged child; the Group has already strengthened its corporate social responsibility (CSR) programmes across all operating states in India and Zambia.

Our programmes on nutrition, mid-day meal, health & hygiene, women empowerment, livelihood, computer education, infrastructure development, mother and child care, agriculture development, water & electricity, to name a few, have become bench-mark in the States we operate, viz. Rajasthan, Orissa, Chattisgarh, Tamil Nadu and Goa.

We are proud to serve rural community at large:-

2,050 Vedanta Bal Chetna Anganwadi Centres across India.

84,500 rural under-privileged children being provided nutrition value.

180,000 rural children being provided mid-day meal through 6 hi-tech kitchens.

100 Child Care Centres - Project 'Parvarish' - for pre-school, nutrition & health care.

540 Care Centres - Project ' Mamta' - for child care, care for adolescent girls, and expecting mothers.

350 bedded Vedanta Cancer Hospital & Research Centre, upcoming in Raipur, Chattisgarh.

53 villages covered by Mobile Health Units - covering 32,000 under-privileged families.

Vedanta Hindustan Zinc Heart Hospital in, Udaipur Rajasthan.

18 Company run hospitals and health posts - 300,000 rural people provided quality health.

200,000 children of 600 Government Schools covered under Computer Education.

500,000 beneficiaries of Computer Literacy Program spread across 320 Centres in India.

1,500 youth trained in livelihood programs for self employment.

27 company run schools and Post Graduate college for girls at Ringus, Rajasthan.

200,000 women trained through 12 Vocational Training Centres across India.

12,000 Jail inmates trained across India - 14 Jails covered including Tihar Jail, New Delhi.

1,825 Self Help Groups bringing socio-economic empowerment in 24,300 rural women.

1,050 farmers covered under micro-irrigation, cultivation,land improvement and water-shed.

75 villages under Integrated Village Development Program.

82 NGOs partners - regional, national and international.

Investment of over USD 65 million (Rupees 300 crore) in CSR by 2010.

On mission to touch the lives of another 1.6 million under-privileged children through nutrition program and computer education.

Vedanta group has an unparalleled vision not only for businesses but also for social change in India.