ZINC The base metal. News and Views. Symbol Zn Message Board

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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn

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From: LoneClone	10/5/2008 11:21:07 AM
	of 3270

HZL may increase exports after expansion steelguru.com BS reported that Hindustan Zinc Limited is aiming at 55% of its turnover to come from overseas markets up from over 15% now once its capacity expansion plan is in place by 2010. The company also expects an early rise in the zinc price. As per report, HZL, which is one of the world’s lowest cost producers, is using the downside in the zinc price as an opportunity to expand as it expects prices to catch up from the first or the second quarter of the next financial year. Mr Mahendra Singh Mehta CEO of Hindustan Zinc said that “We expect the excess of supply in the market to get exhausted in the next three to six months as high cost production is being shut down.” He said that once that is over the prices should start shooting up from the first or the Q2 of the next financial year.” The report added that the company’s cost of production is USD 635 a tonnes before the royalty payout, largely due to the low cost of mining ore at the Rampura Agucha mine. It is expanding its zinc and lead production capacity to 1.07 million tonnes per annum with an investment of INR 3,600 crore. Zn, which is largely used for galvanization of steel, has seen about a 28% drop in spot prices this year as demand for the ferrous metal declined due to an economic slowdown in Western markets and China. The current spot price of the metal at USD 1,770 a tonnes is about 57% lower from the high of USD 4,130 a tonnes in January 2007.

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