Corporate Presentation
Hindustan Zinc
June 2016
Hindustan Zinc - A Sustainable Enterprise
1st Rampura Agucha Largest
zinc mine globally
2nd Largest zinc-lead miner
globally with: 9 million+ MT of
ore production capacity
4th Largest zinc-lead smelter
globally: 1 million+ MT of
production capacity
(Rankings calculated from Wood Mackenzie, Q1 2016
Long Term Outlook)
A Journey towards Excellence - 15 million T Ore Production Capacity;
& 1.2 million T MIC production capacity from Underground Mines
2 Hindustan Zinc Limited
Vision, Mission & Values
We want our employees to be ambassadors of our core values
To be the worlds largest and most admired zinc-lead
and silver company
Enhance stakeholder value through exploration,
innovation, operational excellence and
sustainability
Be the lowest cost producer
Maintain market leadership & enhance customer
Entrepreneurship Trust
delight Care Innovation
Excellence Integrity
Respect
3 Hindustan Zinc Limited
Safety & Sustainability
LTIFR (per million man-hours worked)
Safety
Zero harm to people, host communities and
environment 2.29 2.15 78%
1.95
Safety cultural transformation journey from
reactive to interdependent; engagement with
Dupont 1.01 0.88
0.64 0.5
Integrated safety organisation structure
Promoting behaviour based safety
FY10 FY11 FY12 FY13 FY14 FY15 FY16*
Focus on hazard identification & near misses *As per new ICMM Guidelines
Year Highlights
Sustainability Initiatives
0.50 Rs. 42 Crore
Zero water discharge Lost time injury frequency rate Invested in environment
initiatives
Adiabatic cooling towers
100% 0
Sewage treatment plant as sustainable water Periodic medical examinations for category 4 or 5 environmental
source all applicable employees incidents
Green energy of 309MW 2,83,071 100%
Safety training hours delivered to units have Biodiversity Management
Bio-diversity conservation employees and contractors Plans in place
100% 100%
Assurance of all sites by our non-hazardous waste recycling
internal audit programme (VSAP)
4 Hindustan Zinc Limited
Core Strengths
Leading the way with fully integrated operations
Among the lowest cost producers of zinc
Captive mines with Reserve &
C1 Cash Co st ($/t Z n)
Resource base of 389.9 million
MT ensuring mine life of 25
years
2,000
Integrated metal
production supported by
Hindustan Zinc
1,700
captive power plants
1,400
Low cost of operations 1,100
driven by quality assets
and multi-metal recovery
800
500
Market leadership in India with
strong presence in emerging Cumulative Production (Percentile)
economies of Asia
Source: Wood Mackenzie Research
5 Hindustan Zinc Limited
Portfolio of Tier - 1 Assets
Rampura Agucha Mine
Reserve : 51.1mt Chanderiya Smelting Complex
Resource : 52.7mt Pyrometallurgical Lead Zinc Smelter:
Reserve Grade : Zn 14.0%, Pb 1.8%
Current Ore Capacity : 6.15 mtpa 105,000 tpa Zinc and 85,000 tpa Lead
Hydrometallurgical Zinc Smelter: 420,000 tpa Zinc
Kayad Mine
Reserve : 3.9mt Captive Power Plant: 234MW
Resource : 2.0mt
Reserve Grade : Zn 13.4%, Pb 1.8%
Current Ore Capacity : 1.00 mtpa
Sindesar Khurd Mine Dariba Smelting Complex
Reserve : 33.2mt Hydrometallurgical Zinc Smelter:
Resource : 76.3mt 210,000 tpa Zinc
Reserve Grade : Zn 4.7%, Pb 3.2% Lead Smelter: 100,000 tpa Lead
Current Ore Capacity : 4.50 mtpa
Captive Power Plant: 160MW
Rajpura Dariba Mine
Zinc Smelter Debari
Reserve : 9.3mt :
Resource : 49.4mt Hydrometallurgical Zinc
Reserve Grade : Zn 6.3%, Pb 1.6% Smelter: 88,000 tpa Zinc
Current Ore Capacity : 1.20 mtpa
Zawar Mining Complex
Pantnagar & Haridwar
Reserve : 9.5mt
Resource : 82.3mt Processing & Refining of Zinc,
Reserve Grade : Zn 3.4%, Pb 1.7% Lead & Silver
Current Ore Capacity : 4.00 mtpa
Wind Power Generation Capacity of
CPP : 80MW
274 MW
6 Hindustan Zinc Limited
Strong Track Record of Growth
Reserve & Resource (mt) 2.5X Growth Mined metal (kt) 3X Growth
870 880 887 888.92
389.9 840 830
365 375.12 769 106 110 113 144.65
348 735 88 92
332
313 86
299 629 84
272 572
532 78
232 67
282.8
210 239 261 266.92 409 60
178 223
165 197 216 364
146 183 298 54 752 739 765 770 774 744.27
152 47 651 683
133 36
109 505 551
98 472
92
317 355
102 109 110 104 108.2 107.1 262
77 80 89 97
54 67 69
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Reserve Resource Net R&R MIC - Zinc MIC - Lead Total Mined Metal
Ore Production(mt) 3X Growth Silver Metal Integrated Saleable (MT) 9X Growth
10.45 422
9.3 9.36
8.6
8
7.5
6.7
7.1
2.5 3.8 4.36 5.97 288 301
1.4 2.1 266
5.8
1.7 2
5.1
4.8
1.7 202
3.9 1.4
3.6 1.3
3.1
1.5 6.1 5.9 6.1 139 148
1.4 5.5
1.3 5 5.1 5 105
4.1 4.48
3.5 3.7 80
2.2 2.5
1.8 47 51
35 24
11
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Ore (OC) Ore (UG) Total Ore Production FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
7 Hindustan Zinc Limited
Robust Financial Performance
EBITDA CAGR 26% despite Zinc LME growth of only 9%
Rs bn EBITDA Rs bn PAT Rs bn Cash & Cash Equivalents*
80.00 90.00 400.00
70.00 80.00 350.00
60.00 70.00
300.00
60.00
50.00 250.00
50.00
40.00 200.00
40.00
30.00 150.00
30.00
20.00 20.00 100.00
10.00 10.00 50.00
- - -
02 04 06 08 10 12 14 16 0 2 03 04 0 5 0 6 07 08 09 1 0 11 1 2 1 3 14 15 16 0 2 0 4 0 6 0 8 1 0 1 2 1 4 1 6
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
*Before Project Capex
EPS Market Cap LME Price
Rs Rs bn $/MT
25.00 900.00 4,000
800.00 Zinc LME
20.00 3,500
700.00 Lead LME
3,000
15.00 600.00
500.00 2,500
10.00 400.00 2,000
300.00 1,500
5.00 200.00
1,000
100.00
- 500
-
02 04 06 08 10 12 14 16 -
FY04
FY05
FY06
FY07
FY08
FY09
FY13
FY14
FY15
FY16
FY02
FY03
FY10
FY11
FY12
FY FY FY FY FY FY FY FY
FY03
FY04
FY05
FY07
FY08
FY09
FY11
FY12
FY15
FY16
FY02
FY06
FY10
FY13
FY14
8 Hindustan Zinc Limited
Way Forward
Journey ahead - Projects
Resource driven growth
Current Capacity, (mtpa)
Six major projects to increase mined metal Capacity Addition, (mtpa)
capacity by 20% to 1.2 mtpa, including
replacement from RAM OC
3.8
3.75 1.75
Total capex of $1.5 billion, out of which ~$0.6 bn
is spent
0.3 2 0.65
Expansion of mines in sync with increasing R&R 0.9 0.35
Extension of RAM OC mine life to FY20 to RAM UG Rajpura Sindesar Kayad Zawar1.2 Bamnia
0.5
smoothen transition to UG Dariba Khurd Kalan
Transition to underground mining (% share in MIC) Future mine production profile
100% Ore Production MIC Production
90% 100%
100%
80%
70% 80% 80%
60%
60% 60%
50%
40% 40% 40%
30%
20% 20% 20%
10%
0% 2013-14
0% 2020-21
0%
2014-15 2020-21 2014-15 2020-21
FY15 FY16 FY17 FY18 FY19 FY20 FY21
Underground Open-cast BKM ZWM RDM SKM Kayad RA UG RA OC
9 Hindustan Zinc Limited
Community Engagement
Fostering Self-Reliance through
RAJASTHAN
Community Development
Reaching to more than half a million
people in Rajasthan
Positively impacting lives of more than
100,000 households in 358 Villages in
Rajasthan
Members of United Nations Global
Compact (UNGC), TERI-BCSD (Business
Council for Sustainable Development) and
National Population Stabilization Fund
10 Hindustan Zinc Limited
CSR Initiatives
Education Health, Water & Sanitation Sports & Culture
Model School Development
Vedanta- Hindustan Zinc Heart Sports Tournaments at district,
Vedanta Post Graduate college for
Hospital, Udaipur block and village level
girls Cultural events
Rural Safe Drinking Water Project
Vedanta Computer Literacy
Rural Sanitation Program
Program
Sustainable Livelihood Environment
Women Empowerment
(Farm & Non-farm) Conservation
Mega Plantation Drive
Improved Agriculture Program SHG Development Program Water Conservation Drive
Livestock Development Program Capacity Building Interventions Sewage Treatment Plant at
Vocational Trainings Income Generation Programs
Udaipur
11 Hindustan Zinc Limited
THANK YOU!
