Hindustan Zinc Ltd.

Hindustan Zinc (HZL) has shelved production at the Visakhapatnam zinc smelter, as the management found bringing raw material from Rajasthan and using it at the local smelter unviable due to increasing input and freight costs. The local unit has a production capacity of 56,000 tonne a year.

Due to rise in supply of raw material by China, Australia, Canada, Bolivia and Kazaksthan, importing was less expensive for the company than incurring heavy freight cost on sourcing raw material from captive mines in Rajasthan. Due to the stoppage of production, nearly 300 contract workers have been affected.

The company‘s net profit for the quarter ended September 30, 2011 has surged by 41.74% at Rs 1344.69 crore as compared to Rs 948.72 crore for the previous fiscal. The company’s total income has increased by 26.74% to Rs 3023.60 crore for the quarter under review from Rs 2385.64 crore for the similar quarter last year.