Hindustan Zinc Limited, the operating company of Vedanta in Zinc and Lead business, is on a new high. Vedanta Resources Plc. is a London Stock Exchange listed FTSE 100 diversified metals and mining company with revenues in excess of US$ 6.5 billion. Its principal operations are located throughout out India, with further operations in Zambia and Australia. The major metals produced are Aluminum, Copper, Zinc & Lead. Vedanta has also recently acquired Sesa Goa Limited, India’s largest producer exporter of iron ore.
Hindustan Zinc has not only doubled revenues to Rs. 8.560 crore but also had a three fold increase in profit after tax to Rs. 4,442 crore. Thereby bringing three fold increase in earning per share to Rs. 105/-.
Recently Hindustan Zinc has been awarded one of the most prestigious ‘Golden Peacock Award for Excellence in Corporate Governance – 2007’ in the area of Metal, during the 8th International Conference on Corporate Governance, London.
The Golden Peacock Global Award for Corporate Governance was instituted by the World Council for Corporate Governance in January 2001 to foster competitiveness among businesses to improve the quality of corporate governance. The selection process involves a two-tier evaluation.
A highly eminent jury, chaired by Shri Ola Ullsten, former Prime Minister of Sweden and with other eminent members of the jury included Shri P N Bhagwati, former Chief Justice of India, Shri Ruud Lubbers, former Prime Minister of the Netherlands and Shri Olivier Giscard d'Estaing, founder Chairman of INSEAD nominated Hindustan Zinc for the prestigious ‘Golden Peacock Award for Excellence in Corporate Governance – 2007’ in London.
The recognitions have not been new to Hindustan Zinc. FIMI Social Awareness Award – 2007, TERI Corporate Social Responsibility Award – 2007, FICCI-SEDF Corporate Social Responsibility Award – 2007 are just few names to mention.
In the areas of environment, health and safety, HZL has proved its excellence by winning Environment Excellence Award by FIMI, Golden Peacock Award for Occupational Health and Safety, Four-Star rating for Health and Safety Performance by British Safety Council, UK, to mention.
The Asian Power, Charlton Media Group, Singapore also gave “Best Emission Reduction Project in Asia’ award and also ‘Asian Power Plant of the Year 2007’ to Captive Power Plant of HZL located at Chanderiya, Chittorgarh.
The awards are recognitions of the excellent work done by Hindustan Zinc Limited in vivid areas. May it be the basic business of mining or corporate social responsibility, HZL efforts are well regarded.
It is worth mentioning here that:
• HZL paid an interim dividend of 25% and has further recommended another 25%, making a total dividend of 50% for the year 2006-07, which is highest so far in the history of HZL.
• Hindustan Zinc Limited is a debt free company as it has already repaid its external commercial borrowings to the tune of USD 125 million.
• 88,000 tpa Zinc de-bottlenecking and 80 MW captive power plant projects
• The wind energy projects at Karnataka, Gujarat and Maharashtra totaling 110.4 MW, are progressing as per schedule.
• Revenue doubled to Rs. 8,560 crore.
• Profit increased three fold to Rs. 4,442 crore.
• Earning per share also increased three fold to Rs. 105/-.
Hindustan Zinc has always concentrated on exploration and it has always been an integral part of the HZL’s mining strategy. During the last couple of years, emphasis on exploration has been intensified in the light of aggressive growth plans of the company. During the year 2006-07, the company increased its reserves and resources by 32 million tonnes, an increase of 18% over the previous year, net of depletion. The total reserve and resources as on 31st March, 2007, now stands 209.4 million tonne. A well laid Rs. 28 crore exploration plan is currently being pursued in fiscal year 2007-08.
Regarding Hindustan Zinc’s expansion plans, the company is well on its path to realize its one million tonne of metal per year mission. Construction activities for the second 1,70,000 tpa smelter at Chanderiya, matching mining expansion at Agucha with its associated captive power plant are in full swing and on track for commissioning ahead of schedule. 88,000 tpa Zinc de-bottlenecking and 80 MW captive power plant projects are progressing well and on course for completion on schedule. The wind energy projects at Karnataka, Gujarat and Maharashtra totaling 110.4 MW, are progressing as per schedule. Post completion of these projects, the Company will have a total wind power capacity of 148.8 MW.
With a mission to produce one million tpa of metal by 2010, the company is well on its path to success.