Augmenting Growth

The key material
issue associated

Priority of the


Community engagement and development HIGH
Transparent disclosure MEDIUM
Local sourcing MEDIUM
Land acquisition and rehabilitation LOW

For over five decades, HZL has been actively contributing to nation-building through taxes, royalties and by creating livelihoods; with an active role in sourcing responsibly from local suppliers, encouraging small businesses, investing in community development programmes and infrastructure. HZL drives socio-economic development by fostering mutually beneficial relationships to ensure long-term success.

Our ambition

To continue enhancing the direct economic value generated, through profits and employment creation

To enhance the indirect economic value generated through the contribution we make to the region’s economy

Our approach

  • We acknowledge that we play a crucial role in uplifting the overall economy of the region where we operate and hence our senior management is focussed on contributing towards longterm economic prosperity and social wellbeing through job creation, provisioning local goods and services, community investments, and contributing to the exchequer.
  • These commitments are part of our Sustainability Vision and are supported by our standards and systems.

Strategic priorities

  • To develop a more structured approach for measuring the economic value our operations generate for the Government of Rajasthan and the local communities
  • To continue making significant contribution to the United Nation’s Sustainable Development Goals and at the same time contributing to the local Governmental schemes and programmes
  • To collaborate closely with public institutions for advocating the usage of zinc for sustainable development and introduce other good practices and products, which shape the industry-wide practices in the country
  • To support the ancillary industry
  • Create systems for availability of skilled workforce

Performance in FY 2019

  • We contributed `11,563 Crore to the Government treasury through royalties, taxes and dividends.
  • ` 905 Crore disbursed as salaries and wages
  • ` 130.20 Crore community investments

Our purpose of creating and sharing value

Our purpose is to deliver HZL's shareholders financial returns and in the process we focus on investments in innovation, process automation, and effective risk management systems.

We believe our positive reputation and image are valuable to our shareholders and employees. The reputation that HZL enjoys today is a consequence of our relentless focus on sharing value with all our stakeholders and the continuous improvements we have made in our financial and non-financial performance. With new business, new investments and improvements, HZL continues to play a significant role in nation-building.

Economic scenario and our performance

Our financial performance is closely interlinked with the global macroeconomic trends, which have given diverse signals to the market during FY 2019. The uncertainty from international trade dispute, increasing protectionism, slowdown in manufacturing activity, volatility in financial markets together with the negative impact of a stronger dollar and higher interest rates in emerging and developed markets have combined to undermine the pace of global growth.

The modest growth in FY 2019 consumption was mainly attributable to China and India. Zinc consumption growth in China has been supported by increasing investment in infrastructure in central and western parts of the country and measures to stimulate demand in the automotive, household appliance and other sectors. The zinc demand in the US benefitted from continued expansion in manufacturing sector. Trade talks have a significant bearing on investor sentiment and consequently on metal prices. Against a backdrop of a fundamentally tight zinc metal market, a resolution of trade crisis could fuel a surge in metal prices. In this scenario, HZL continued to make and share profits with respective shareholders.

Financial performance

` 10,188 Crore

Paid out as dividend to providers of capital


HZL reported ‘Revenue from operations’ (net of excise duty) of ` 21,118 Crore, a decrease of 4% y-o-y, higher lead and silver volumes, and rupee depreciation, offset by lower metal prices and zinc volume.


The profit before depreciation, interest and tax (PBDIT) was ` 12,452 Crore in FY 2019, down 12% as compared to FY 2018.

Net profit

HZL reported record net profit of ` 7,956 Crore, 14% lower than previous year on account for lower PBDIT and higher depreciation, partly helped by lower tax rate. Depreciation and amortisation has trended up due to higher capitalisation and increased underground ore production.

Operational performance

The year saw a sharp increase in mined metal production from underground mines. With an increase of 27% increase in ore production and better grades, the underground mined metal production increased by 29% to 936 kt this year. The closure of open-cast operations resulted in a decline in total mined metal production by 1% from last year.

At 894 kt, integrated metal production was down 7% from the last year. Due to lower zinc mined metal availability, zinc production was at 696 kt, 12% lower year-over-year. Integrated lead and silver production were at record 198 kt and 679 MT, an increase of 18% and 22%, respectively over last year. This was largely due to higher lead mined metal availability, retrofitting of pyro metallurgical smelter lead in line with higher lead mined metal availability and better silver grades.


The Board of Directors declared a Special Interim Dividend of 1,000% i.e. ` 20 per share on equity share of ` 2 each, amounting to ` 10,188 Crore (including DDT).

The Board has not recommended final dividend for the year.

Rated for sound financial health

CRISIL has reaffirmed HZL's long-term rating of AAA/Stable and short-term rating of A1+. The ratings continue to reflect our lowcost operations, strong market position, efficient and integrated operations, high reserve and resource and a strong balance sheet

Transparency and disclosure with providers of capital

Further, to ensure transparency in this process, we communicate with our shareholders through press releases, relevant facts, quarterly and annual income statements, periodic participation in events with stakeholders and analysts from financial institutions. The Company also performs periodic surveys with analysts and investors on the level of information provided and their respective publishing actions

Local employment and business opportunities

Hiring locally and sourcing from local suppliers benefits our communities and helps in ‘nation-building’ in many ways, including reduced poverty, improved skills and the opportunity to achieve long-term inclusive growth and economic diversification.

With our business activities, we try to encourage local employment and procurement, as we understand they are a means to mitigate risk and maximise opportunities by building community and government support, reducing costs, improving efficiencies and creating a more inclusive and diverse workplace

HZL has played a significant role in the economic development of the regions where we operate. Our projects generate direct and indirect employment to the tune of 4,199 full-time employees and 17,384 contract labourers.

In addition to the employment generated, we constantly engage with communities involved in resettlement and rehabilitation programmes. Any land acquisition or mining closure of HZL is followed by a series of activities that help create opportunities of economic value generation through enterprise development and other employment created.

Seamless transition to Open-cast Mining

Over a period of the last 27 years, Rampura Agucha Open Cast Mine (RAOC) produced around 79 MT of ore and 710 MT of waste, delivering its last ore in March 2018 before seamlessly and successfully transitioning into an underground mine on the completion of its open pit operations. We followed the mine closure plan as per the international standards like IFC and ICMM and ensured that society and environment are not impacted negatively.

In consultation with our key stakeholders, we came up with a range of solutions to transition sustainably and most of the people engaged with the Rampura Agucha Open Cast (RAOC) were absorbed in existing Rampura Agucha Underground (RAUG) operation. These people were imparted training and skills required to work in the underground mine. Those who opted out were suitably compensated and released.

On the environment front, waste dump rehabilitation is being done by taking up plantation. The 50 Ha waste dump is being utilised to set up 22 MW solar power plant; several initiatives to monitor air and water quality are being taken up.

The open pit operation has not been fully closed except for the mineral extraction part. The activities such as dewatering operation, underground ore and waste hauling, construction of underground portal in open pit, construction of ventilation raises in open pit and pit slope stability management in open cast mining will continue in the long run to support and facilitate the underground mine operation.

30% suppliers we engaged during the year were local

18% employees newly hired in the company are local

Provided skills or training or job placement services to more than 550 youths
By local we mean the state where our operations are located.

Developing ancillaries, supporting local economy

After successful operation of ‘waste to wealth’ ancillary plant at Dariba Smelting Complex, a new ancillary unit has commenced construction at Chanderiya Lead Zinc Smelter (CLZS) to treat all smelting process residue including work-in-progress material like zinc oxide, copper dross, purification cake, antimony dust and cadmium sponge and is expected to be commissioned by FY 2020. The plant is expected to generate a cost saving in the range of ` 50-75 Crore per annum by producing value-added products, which will be fed back to our mines and smelters.

Contribution to sustainable development

We constantly monitor how our financial progress is contributing to the global and local agenda of sustainable development. The United Nations Sustainable Development Goals (SDGs) establish a global agenda to protect the environment, eliminate poverty and ensure a healthy, prosperous life for all by 2030.

We believe that industry, such as metals and mining, can play a major role in advancing these goals, and we are committed to being a leader in the areas where we have the greatest impact through our business activities.

We map the progress of our strategic actions for addressing material issues and monitor how are these actions contributing in meeting the targets of the Sustainable Development Goals.