Boliden closing in on deal for Lundin’s European mines
A deal would cement Boliden’s position as one of Europe’s biggest producers of zinc.
The world’s focus on sustainable use of resources to counter climate change can spur demand for zinc, a metal used for galvanizing steel structures to protect them from corrosion, Arun Misra, Chief Executive Officer of Hindustan Zinc Ltd. said.
“I see zinc as a solution for sustainability across the globe,” Misra told Bloomberg Television in an interview Wednesday. “It reduces corrosion. It also helps in maintaining government-made infrastructure operate for much longer than usual.”
India has pledged to reach net-zero by 2070, a goal that will require trillions of dollars of investment and greater material and energy efficiency. Hindustan Zinc, a unit of Vedanta Ltd., has argued that corrosion burdens economies as infrastructure needs frequent maintenance and replacement.
“In India, typically 15% to 20% of the railway lines need to be replaced every year due to corrosion,” he said. “We can stop that if all the railway lines are galvanized.”
The company, which also makes lead and silver, expects refined zinc and lead production of 980,000 to 990,000 tons this fiscal year, just shy of its 1 million tons target, Misra said. The company plans to hit 1.2 million tons of output next year, if the pandemic is contained, he said.
In the next 10 to 15 years, the company plans to increase its zinc and lead capacity to more than 2 million tons a year, with 1.5 million tons in India and the remaining outside. South Africa is a possible destination because of its logistical proximity to European markets, Misra said.
Speaking on the impact of coal shortages, Misra said the company’s supplies are protected with forward contracts until the end of the year in March.
(By Rajesh Kumar Singh, with assistance from Rishaad Salamat, Haslinda Amin and Anand Menon)
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