Hindustan Zinc weighs expansion to tap opportunities in Europe
Hindustan Zinc, a unit of billionaire Anil Agarwal’s Vedanta, is considering expanding overseas as a way to profit from growth opportunities in Europe.
“There is a strategic thought that we could venture into the international market,” Hindustan Zinc CEO Arun Misra said in a phone interview. “Europe provides us with an opportunity, the make or break factor is the freight.”
That expansion could potentially involve international zinc assets held by the company’s parent Vedanta, said Misra, adding that minimizing soaring freight costs would be key to such growth. Vedanta’s international business owns zinc assets in Namibia and South Africa.
The decline in zinc since mid-April has pushed the Mumbai-listed miner to re-evaluate its move to lock in prices for some of its output. While Hindustan Zinc sold forward as much as 18% of this year’s production at about $4 200 a ton, that hedging is no longer as rewarding now that prices have dropped, interim CFO Sandeep Modi said on the same call. Zinc traded at $2 934 a ton on the London Metal Exchange at 4:15 p.m. local time.
Demand in the company’s home market of India remains robust as the government’s infrastructure push is likely to drive demand for zinc to build galvanized rail lines and power transmission infrastructure, Misra said. The CEO forecast demand growth of more than 3%.
Hindustan Zinc reported a 56% jump in net income in the quarter through June from a year earlier.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation