Binani Zinc Ltd, Edayar CHAPTER1: INDUSTRY PROFILE 1.1) ZINC Zinc is essential for life. All living organisms need zinc as an important micro nutrient. Zinc also imparts life- enhancing properties to other materials like steel. Thus modern civilization needs zinc in a broad range of applications in construction, health, transport, infrastructure, pharma etc. Zinc is also expected to play a vital role for a sustainable future. 1.2) OVERVIEW Zinc is considered to be the fourth most important metal used in the world following steel, aluminium and copper. This metal is primarily used in the steel industry for galvanizing process. The other uses include used in making coins and pennies, used in die-casting in automobile industry, making battery container parts, used as a substitute to tin and lead pipes, ingredient in water colors and paints, activator in rubber industry etc. Also because of the fact that zinc does not corrode due to the non-acidic atmospheric corrosion, it makes the metal worth to use in for extending the life of building structures and modes of transport. The metal also comes in good use as a fungicide, herbicide and rodenticide.
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Binani Zinc Ltd, Edayar
CHAPTER1: INDUSTRY PROFILE
1.1) ZINC
Zinc is essential for life. All living organisms need zinc as an important micro nutrient.
Zinc also imparts life-enhancing properties to other materials like steel. Thus modern
civilization needs zinc in a broad range of applications in construction, health, transport,
infrastructure, pharma etc. Zinc is also expected to play a vital role for a sustainable
future.
1.2) OVERVIEW
Zinc is considered to be the fourth most important metal used in the world following
steel, aluminium and copper. This metal is primarily used in the steel industry for
galvanizing process. The other uses include used in making coins and pennies, used in
die-casting in automobile industry, making battery container parts, used as a substitute to
tin and lead pipes, ingredient in water colors and paints, activator in rubber industry etc.
Also because of the fact that zinc does not corrode due to the non-acidic atmospheric
corrosion, it makes the metal worth to use in for extending the life of building structures
and modes of transport. The metal also comes in good use as a fungicide, herbicide and
rodenticide.
Zinc is extracted from zinc ores mostly sphalerite, zincite and smithsonite and the world
mine production of zinc concentrate sums up to around 10008000 tons annually. The zinc
concentrates are then used to produce the zinc metal and around 10319000 metric tons of
metal is produced per year. China is the largest producer country of zinc in the world in
context of both metal and concentrate production.
1.3) USAGE
One metal that is showing a definite potential for a long lasting strong market is zinc. It is
a rapidly growing area and it should be watched in the immediate future as production is
expected to greatly be increased on account of demand. The need for zinc today is ever
increasing as nations around the globe become more developed. It is used in many
Binani Zinc Ltd, Edayar
industries and ways to extract it are constantly being enhanced. Its main use, about 50%,
is in the automotive industry where it provides anti-corrosion properties to keep cars from
rusting. It is also used in the construction industry (about 20%) for the same purpose.
Other industries that use this element in abundance is the steel industry, where it enables
iron to become stainless steel, die-casting accounts for another 15%, and other fields
include rubber, cosmetics, art, batteries, and pharmaceuticals. Putting it all together - it
means that the demand for zinc is high and it will continue to be. New contracts have
been made, amounting to millions of dollars, just for zinc in the production of new
batteries for military use.
Zinc mining is at an all time high and plans are being made in India, Africa, Australia, the
United States and other places to greatly increase production - they can't get enough to
keep up with the demand. New mining methods are being experimented with in Africa to
be able to obtain it even faster.
1.4) CONSUMPTION OF ZINC
The world consumption of zinc annually totals up to around 10774000 tons. The three
major nations arising the highest demand for zinc are
China
USA
Japan
1.5) MAJOR PLAYERS
The major zinc players in the world market are Canada and China. Though china was a
net exporter of the metal as it is the maximum zinc producer but its domestic
consumption demand doesn’t allow the country to take a lead in the world exports. The
major exporter countries of zinc metal along with their export figures are
Canada (712000 metric tons)
China (472000 metric tons)
Australia (443000 metric tons)
Binani Zinc Ltd, Edayar
Korea (243000 metric tons)
Netherlands (210000 metric tons)
Finland (208000 metric tons)
Mexico (166000 metric tons)
France (143000 metric tons)
Norway (133000 metric tons)
Japan (95000 metric tons)
Spain (79000 metric tons)
The world exports of the zinc metal have been constantly decreasing and as there is a
deficit in the world market now, the imports of the metal have become more than the
exports done in the world. The major countries that import zinc with their import figures
are:
United States of America (878000 metric tons)
China and Taiwan (304000 metric tons)
Germany (231000 metric tons)
Belgium (215000 metric tons)
Italy (205000 metric tons)
Netherlands (199000 metric tons)
Singapore (148000 metric tons)
France (127000 metric tons)
Korea (110000 metric tons)
United Kingdom (105000 metric tons)
China (69000 metric tons)
The prognosticators are expecting a solid market for investments for many years down
the road. China and other Asian countries are working hard to increase their supplies of
zinc for their growing needs. Various funds are even getting into the hot zinc market.
This definitely looks like a growing strong market for you to invest in - while there is still
much growth soon to come.
Binani Zinc Ltd, Edayar
1.6) ZINC PRODUCING COUNTRIES
As mentioned above zinc has been produced in the world for quite a along time and today
also the zinc ores are being mined in more than 50 countries of the world. The pattern of
zinc mine production in the world is not a concentrated pattern as there are over 266
mines indulging in the extraction of zinc but only around 19 mines are able to stretch
their production over 100000 tons per annum. 80% of the zinc mines fall under the
category of underground mines, 8% relate to the category of open mines and the
remaining are a combination of both open and close mines. The total mine production of
zinc ore in the world accounts up to around 10008000 metric tons with 64% share held by
the underground mines. The major countries engaged in the zinc mine production are
China
Australia
Canada
Peru
United States of America
Namibia
Ireland
Sweden
1.7) PRODUCTION OF ZINC IN INDIA
India was one the first countries that started the process of extracting and smelting zinc.
Since that time, the country is producing this metal and is one of the oldest countries to
do that. Though, India is not a leading player in the production zinc but it is moving in
the direction to get self reliant in this context. India has approximately 4.3% share in the
total zinc smelter capacity in the Asia pacific region. The largest company, which was
indulged in the production of zinc, is a public sector company named Hindustan Zinc
Limited. But now, ever since the company got privatized, the Indian industry is
completely in the hands of the private sector. It can be said that the zinc industry in India,
Binani Zinc Ltd, Edayar
after privatization, is heading towards a major expansion programme. The major zinc
mines in India which were under the control of the company are
Rampura Agucha mine
Rajpura Dariba mine
Zawar mine
The smelting plants in India engaged in the production of zinc metal are
Chanderia Lead Zinc Smelter (CLZS) – Rajasthan
Debari Zinc Smelter (DZS) – Rajasthan
Vizag Zinc Smelter (VZS) – Andhra Pradesh
Binani Zinc Smelter – Kerala
As India was one of the first countries to gain the knowledge of extracting zinc from zinc
ores and start the production of zinc metal, it should have been an important player in the
world zinc market but this is not the current situation. India’s reputation regarding zinc is
not significant as it just produces a small share of the metal in the world’s production and
is not able to satisfy its domestic consumption demand making it a net importer of zinc.
Zinc production in India was in the hands of the government initially as all the operations
in India relating to the metal were in the hands of a public sector company – Hindustan
Zinc Limited. It was the biggest company in India, which took care of zinc extraction and
its smelting process. But in April 2002, this company was privatized in favor Sterlite
group and after that the Indian industry is in the hands of private sector completely. The
current Indian demand for zinc stands at around 3.5 lakh tons that is fulfilled with the
help of domestic production and imports too. About 70% of the Indian demand comes
from the galvanizing sector. After privatizing the zinc sector it is expected that by 2010
the country would become self-reliant to satisfy the domestic demand. After that, India
may transform into a net exporter of the metal.
Binani Zinc Ltd, Edayar
1.8) MARKET INFLUENCING FACTORS
Level of stocks with London Metal Exchange
Fluctuation in the world demand for zinc
Growth rate of the zinc producing countries
Changes in the prices of the other substitute metals
Funds in the zinc sector.
1.9) MAJOR TRADING CENTRES OF ZINC
The largest zinc market in the world is the London Metal Exchange that affects the world
demand and supply for zinc significantly.Zinc is also traded in the Indian commodity
exchanges like Multi Commodity Exchange of India, National Commodity and
Derivatives Exchange of India and National Multi Commodity Exchange of India.
Binani Zinc Ltd, Edayar
CHAPTER 2: COMPANY PROFILE
Binani Zinc is the pioneer in the manufacture of high grade electrolytic zinc in India
since 1967. The project initially commenced as Cominco Binani Zinc, on 2nd August
1962, the technical and financial collaborative arrangement was with Cominco Limited a
Canada based world leader in non-ferrous metallurgical field. After the withdrawal of
Cominco Limited as the financial collaborators in 1991, in alignment with their
worldwide policy, the company was rechristened as Binani Zinc Limited. Binani Zinc
was destined to carve its niche in the domestic private sector, a turning point in Indian
Industry in saving considerable foreign exchange on the import of this vital white metal.
Binani Zinc Limited got into collaboration with M/s.UM Engineering of Belgium for a
modernisation & expansion programme. The ultra-modern zinc production plant with a
capacity of 30 kty is located across 110 acres of land in lush green, verdant Edayar
village, Ernakulam District, Kerala on the banks of serene river Periyar, 20 km upstream
from the Cochin port.
This strategic location, named as Binanipuram, has proven ideal as it facilitates the
loading and off-loading of zinc concentrate, provides cost efficient power supply, ease in
transportation, abundant water and easily available resources, inclusive of a literate
workforce. The raw material viz. Zinc concentrate is imported and carried to Cochin Port
and unloaded at the fully integrated plant site to go through a fourfold techno savvy
refining process, with state of the art methodologies.
The company has an annual turnover of Rs. 266 crores. There are 96 management staff
and 240 non-management staff making it a total of 336 employees. The capacity of the
plant initially was 14000 Tonnes per annum. Over a period of time the capacity has been
increased to 20000 Tonnes in 1992 and 38000 MT in 2005. The total consumption in
India 425000 MT Per Annum. But the supply of zinc in India only amounts to 3,
58,000/annum, a major portion of which is supplied by Hindusthan Zinc (3,
Binani Zinc Ltd, Edayar
20,000/annum) and a small percent by Binani Zinc (38,000/annum). So the country has to
import zinc from different places.
2.1) HIGHLIGHTS
The company has many firsts to its credit
It is the first Indian company to operate a customized zinc smelter designed for
100% imported zinc concentrate.
The first Indian company to produce special high grade quality of zinc with
99.995% purity.
The first to install high productivity, energy saving super jumbo cell technology.
The first in the private sector and one of the two primary manufacturers of zinc in
India.
The only company to install a converter heat exchanger system in the acid plant,
designed by M/s. Lurgi, Germany for energy conservation.
Among the first to be recognized by the Department of Science and Technology,
Government of India for its R&D facility and laboratories.
The first to be recognized by the Bureau of Industrial Costs and Prices as the Best
Zinc Plant in the country for the steps taken for energy conservation.
First in India and, in Asia, to be certified by BVQI for the four international
accreditations viz., ISO 14001:1996, SA 8000:1997 as well as OHSAS
18001:1999 for installation and maintenance of Environmental Management
System, Social Accountability Management System, Occupational Health and
Safety Assessment Series respectively.
The only Indian company having solid waste( jarosite) disposal facility,
confirming to EPA ( USA) standards.
Binani Zinc will also pioneer corporate sustainability reporting ( C.S.R ) on the
lines of the global reporting initiative (GRI )
The company’s production has reached 38,000MTPA
Binani Zinc Ltd, Edayar
The company has access to the cheapest power sources, which will enable it to
become a low cost producer in spite of small capacity.
The company has initiated global sourcing of raw material feed to ensure
diversified resources.
Long term tie-ups with major suppliers of Zinc concentrate for assured supply.
Binani zinc also has the capacity to treat concentrates of varying compositions,
giving it an unassailable edge over integrated producers.
2.2) BVQI CERTIFICATIONS
As mentioned earlier Binani Zinc Ltd is the first company in India and, in Asia, to be
certified by BVQI for the four international accreditations viz., ISO 14001:1996, SA
8000:1997 as well as OHSAS 18001:1999 for installation and maintenance of
Environmental Management.
2.2.1) ISO 9000: 2000 QUALITY MANAGEMENT SYSTEM
It is intended to demonstrate its ability to provide consistently a product that meet
customer and applicable regulatory requirements. It also addresses customer satisfaction
through the effective application of the system, including process for continual
improvement and the prevention of non conformity. The system is audited once in six
months.
2.2.2) ISO 14001: 2004 ENVIRONMENTAL MANAGEMENT SYSTEM
All activities and their environmental aspects and impacts are assessed and procedures
are laid down to prevent pollution. The system is audited in every six months by internal
and external auditors. Environmental objectives and environmental management
programs are set for officers at various levels to ensure continual improvement in
environmental performance.
2.2.3) SA 8000:2000 SOCIAL ACCOUNTABILITY MANAGEMENT SYSTEM
Binani Zinc Ltd, Edayar
To achieve global standards the company has established SAMS that is in conformity
with the requirements of social accountability standards. The social accountability
management system addresses the following:
Forced labour, Child labour, Health and Safety, Freedom of association, Right to
collective bargaining, Discrimination and Management systems.
2.2.4) OSHAS 18001:1999 OCCUPATIONAL HEALTH AND SAFETY
ASSESSMENT SERIES
It is a set of plans actions and procedures to systematically manage health and safety in
work place
Binani Zinc Ltd, Edayar
CHAPTER 3: PRODUCT PROFILE
The main product of Binani Zinc Ltd Edayar is Zinc. It comes in two varieties Super
High Grade Zinc (SHG) that is of 99.99% purity level and High Grade(HG) of 99.95%
purity level. The main product zinc is obtained after a series of chemical process. The by
products of these process are cadmium and sulphuric acid.
3.1) MAIN PRODUCT
Zinc- high grade (99.95%)
Zinc-super special grade(99.99%)
3.2) BY PRODUCTS
Cadmium
Sulphuric acid
3.3) MARKETS
The company is having 11 depots. They are at Mumbai, Calcutta, Damon , Banglore,
Silvasar, Chennai, Pondicherry, Baroda, Raipur and Tada. The company is exporting its
products to Turkey, Italy, UK, Korea. They have no credit sales.
3.4) THE MAJOR USES OF ZINC ARE :
Anti-corossion coating on steel( galvanizing).
Precision components.
Construction material.
Brass.
Pharmaceuticals and cosmetics.
Micronutrient for humans, animals and plants.
Binani Zinc Ltd, Edayar
3.5) MAJOR CUSTOMERS OF BINANI ZINC LIMITED
3.5.1) ZINC
Eveready industries Ltd.
Phonex industries Ltd.
METADUST
Ganga Jamuna Ltd.
Southern metals and alloys Ltd.
Jeep.
Demorna chemicals Ltd.
Sargam Metals Ltd.
3.5.2) SULPHURIC ACID
Vyshak chemicals Ltd.
Narmada chemicals Ltd.
Hindusthan news print Ltd.
Sud Chemicals Ltd.
Reliance dye chemicals Ltd.
Trishul chemicals Ltd.
Coods agroLtd.
3.5.3) CADMIUM
Anil metals company.
Southern metals market
S.K chemicals Ltd.
3.5.4) RAW MATERIALS
Binani Zinc Ltd, Edayar
The raw material used for producing Zinc is Zinc Concentrate (called calcine) which is
imported at the rate of 66000 MT/YR and the fuel 5.1 KL/day.
3.5.5) WASTE
3.5.5.1) LIQUID
The liquid effluent of 550 m3/day generated from process plant utility services,
DM plant and Supernatant solution from Jarosite pond is discharged into Periyar
River after treatment.
For treating the effluent an effluent treatment plant consisting of equalization
tanks, neutralization tank, Clariflocculator and collection tank are provided.
3.5.5.2) SOLID
Dry Jarosite from leaching and purification plant containing iron, Zinc, Lead,
Cadmium, Copper, Nickel pumped to Jarosite pond.
ETP sludge for disposal in Jarosite pond.
Gypsum and anode used from cell house – Jarosite pond.
Primary and secondary cake leach residue.
Zinc ash from zinc melting furnace.
Nickel cake from leaching and purification plant.
Thallium cake from leaching and purification plant.
Spent V2O5 catalyst from roaster and acid plant.
Lead dross from cell house.
Spent oil from captive power plant.
CHAPTER 4: MISSION, OBJECTIVES AND STRATEGIES
Binani Zinc Ltd, Edayar
4.1) MISSION
To forge ahead as a world class organization in the core sector industry in India
and abroad.
To explore all opportunities and enhance its stake holders value through ethical
practices.
To relentlessly pursue in the new global movement for a “ customer driven,