Binani Zinc to double capacity, invests Rs 500 cr

Zeroes in on 3 mines in Rajasthan; plans tech upgrade

The group is now scouting for mines with zinc concentrates to tap the export markets.

Suresh P. Iyengar

Mumbai, March 5 Binani Zinc, part of the $400-million Binani group, plans to invest Rs 500 crore to double capacity from 38,000 tonnes per annum. “We have zeroed in on three mines in Rajasthan, while the new plant will be set up between Jodhpur and Udaipur,” said Mr Vinod Juneja, Deputy Managing Director, Binani Zinc.

Apart from expansions, India’s second largest zinc producer is planning a technology upgrade to bring down operational cost and improve profit margins.

Presently, the company has a production facility at Binanipuram in Kerala. The plant also has the capacity to treat concentrates of varying compositions.

“The future initiatives are aimed at diversifying the product portfolio by including value-added products and backward integration into mining. This will make us as a quality, cost-effective producer of zinc and its value-adds,” Mr Juneja said.

Following the acquisition of a cement company owned by Shandong Rongan Group in China last year, Binani group is now scouting for mines with zinc concentrates to tap the export markets. The company inherited limestone mines owned by the Chinese company.

“Exporting zinc from China will be more profitable. Once we acquire mines, we will firm up our plans for China,” Mr Juneja said.

The company now does not export any of its products. “We are not exporting our zinc products since it is more remunerative to sell in the domestic markets. Moreover, with rupee-dollar volatility at its peak, we may revisit the export markets at a later stage,” he said.

Zinc, which is used for galvanising steel, is in good demand. Although prices of the metal were influenced by the US economic slowdown and Chinese excess production, analysts expect the robust Indian demand to salvage prices in the current year.

“Demand is rising steadily from India and China, balancing out any price declines. Demand is expected to increase 12 per cent annually in the coming years driven by strong demand in the galvanising sector,” Mr Juneja said.

via: B.L