Vedanta Group firm Hindustan Zinc Ltd (HZL) on Thursday said it is planning to scale up capacity to 1.35 million tonne (MT) in the next three years after the company posted a 14.6 percent increase in net profit at Rs 2,081 crore for the quarter ended on September 30, 2019.
In an interview to CNBC-TV18, Sunil Duggal, chief executive officer, said, “As all the facilities get stabilised, it will give the company an opportunity to do 1.2 million tonne for next year.”
With regards to the cost of production of zinc, he said the company is a bit conservative because of 3-4 structural change, “HZL has undertaken digitisation of mines and it will help to lower the costs. Also, hauling costs are also expected to come down.”
With regards to linkage coal, Duggal said, “Last quarter HZL has received 10 percent, but prior to that it was 40 percent. In the current quarter, the flow has increased slightly to about 20 percent, but there was a flood impact on Coal India production. In Q4, it could rise to 30-40 percent as supply from Coal India stabilises.”