Category: Base Metals
Binani Zinc Ltd (BZL), a Rs 300 crore Braj Binani Group enterprise, is planning to almost treble zinc production capacity to capitalise rising metal’s consumption in infrastructure.
Under the proposed plan, the company has decided to ramp up smelter capacity from the existing 38,000 tonnes in Binanipuram at Kerala to 50,000 tonnes. It also proposes to set up a greenfield smelter with a capacity of 50,000 tonnes in Rajasthan where it is in the process of strengthening backward integration projects.
Since, BZL operates zinc smelter in Kerala with 100 per cent imported raw material, the cost of production was very high compared to the country’s largest zinc producer Hindustan Zinc Ltd (HZL), a Vedanta Group company who owns mines in the heart of Udaipur, Rajasthan.
Uncertainty in zinc concentrate market, availability constraints and above all, dollar-rupee fluctuations were affecting the company’s margins badly. BZL imports zinc concentrates, the raw material for zinc manufacturing, from Australia and Brazil.
“The mine located at states border spread from Ambamata in Gujarat to Deri in Rajasthan, the involvement of two state governments will give impetus to the project and therefore, I am confident that the project would start mining shortly,” said Juneja.
In order to raise efficiency and productivity, BZL is streamlining and clearing the bottlenecks in the systems and processes while working towards better, environment-friendly waste disposal systems.
The project is in final stage of commencing operation while BZL is planning to start commercial operation with expanded capacity on both greenfield and brownfield projects by 2011. Source: Business Standard