Vedanta to In­vest Rs 8,400-cr in Ra­jasthan Min­ing Base

Resource Digest - - CONTENTS -

The Vedanta group signed an early agree­ment to in­vest around `8,400 crore to ex­pand and de­velop its min­eral and min­ing base in Ra­jasthan. This is part of more than `20,000 crore of in­vest­ment lined up by Vedanta to ex­pand its min­ing and oil busi­ness in the western In­dian state over 3-5 years.

The lat­est mem­o­ran­dum of un­der­stand­ing fol­lows an MoU signed re­cently by group com­pany Cairn In­dia to de­velop new oil­fields.

While Vedanta unit Hin­dus­tan Zinc (HZL) plans to in­vest `8,400 crore to de­velop and ex­pand zinc-lead ore mines and smelters, as well as in a new fer­til­izer plant, Cairn has promised to pump in `12,500 crore.

“We have signed a MoU to­day with the Ra­jasthan gov­ern­ment worth `8,357 crore to be in­vested in com­ing three years,” HZL Chief Ex­ec­u­tive Su­nil Dug­gal said.

A few of the lead­ing global zinc mines have closed down in re­cent times and Dug­gal said the in­vest­ment has been planned to go on stream close to the next cycli­cal peak of the zinc busi­ness. “Our fo­cus is on low-cost oper­a­tions with an eye on keep­ing fixed costs low and im­prov­ing in­ter­nal ef­fi­cien­cies that help us re­main rel­a­tively risk free,” he said.

Union min­is­ters Naren­dra Singh To­mar and Piyush Goyal, as well as Ra­jasthan Chief Min­is­ter Va­sund­hara Raje were present at the MoU sign­ing event. Zinc de­mand has been grow­ing at 5% in In­dia this year, higher than the global rate of 3%.

“Our per capita consumption of zinc is much lower than global av­er­age. We hope to see do­mes­tic de­mand climb up in next few years if gal­vanised sheets are used to man­u­fac­ture cars for the home mar­ket, which is presently not the case,” Dug­gal said. An up­com­ing seg­ment is gal­vanised bars used in con­struc­tion, he added. The in­vest­ment will go into var­i­ous dis­tricts like Udaipur, Ra­jsamand, Chit­tor­garh, Bhilwara and Ajmer, an of­fi­cial state­ment said.

HZL has mines in Ram­pura Agu cha, Sin­de­sar Khurd, Zawar, Ra­jpu ra Dariba and Kayad while its smelters are in Dariba, Chan­deriya and Debari.

The com­pany is also look­ing at ex­pand­ing its un­der­ground mines Dug­gal said. Its tar­get is to in­crease mine pro­duc­tion to 12.80 mil­lion tonnes per an­num from 9.09 mtpa and fin­ished metal pro­duc­tion to 1.028 mtpa from 0.85 mtpa.

It plans to spend an­other `1,350 crore on set­ting up a fer­til­izer plant to pro­duce 0.5 mtpa of di-am­mo­nium phos­phate at Debari in Udaipur dis­trict.

The com­pany hopes to built the fa­cil­ity in three years. It is pro­jected to gen­er­ate nearly 7,000 jobs.

Cairn In­dia plans to take up projects in Barmer and Jalore dis­tricts to de­velop the Man­gala-Bhagyam ex­tended oil re­cov­ery, Mangla-Aish­wariya in-fills and Raagesh­war Deep Gas field, as well as set­ting up a sul­phate re­moval plant.

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