Hindustan Zinc : Forest CDP 2022-2023

Hindustan Zinc CDP Forests Questionnaire 2023 Wednesday, September 13, 2023

Welcome to your CDP Forests Questionnaire 2023

F0. Introduction

F0.1

(F0.1) Give a general description of and introduction to your organization.

Hindustan Zinc is one of the largest integrated zinc producers globally, and we also hold a prominent position in lead and silver production on a global scale. Our reputation is bolstered by our status as one of the world's most cost-effective producers, positioning us well to meet the burgeoning demand in Asian nations. We function as a subsidiary of Vedanta Limited, with a 64.9% ownership stake held by the company, while the Government of India retains a 29.5% stake. Our listings can be found on both the NSE and BSE.

Our core operations involve zinc and lead mining, smelting, and power generation. With a metal production capacity exceeding one million tonnes per year, our key mines in Rampura Agucha and Sindesar Khurd, along with modern smelting facilities in Chanderia and Dariba (all in Rajasthan, India), are central to our capabilities. We prioritize operational excellence, sustainability, and cost-efficiency, backed by top-tier assets and over 25 years of mine lifespan. In the past year, Hindustan Zinc achieved significant milestones, including surpassing one million tonnes in refined metal production. Mined metal production increased by 4% to reach 1,062 kt, while refined metal production reached an all-time high of 1,032 kt, marking a remarkable 7% year-on-year growth. Our commitment to exploration drives our growth and future expansions. Successful exploration and development align with our mission and business strategy. We are globally recognized for supplying highly pure refined metals, including LME-registered Special High Grade (SHG) zinc and lead, under various brand names. Our operations span mines, smelters, and refineries.

Our collective power capacity stands at 860.09 MW, which encompasses 505.5 MW from our Captive Power Plant. The remaining 354.59 MW is derived from environmentally friendly power generation methods, encompassing 273.5 MW from wind energy, 40.42 MW from solar power, and 40.67 MW from waste heat generation. Our solar power projects are situated on previously unused sites such as waste dumping yards, Jarosite ponds, Jarofix yard and wasteland, serving as a testament to our commitment to positive environmental impact.

As a responsible mining entity, adhering to biodiversity regulations on local, national, and international levels is of utmost importance. Furthermore, we are committed to upholding robust practices in biodiversity management in accordance with esteemed international voluntary standards, such as those set forth by the International Finance Corporation (IFC) and sectoral

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Hindustan Zinc CDP Forests Questionnaire 2023 Wednesday, September 13, 2023

guidelines on sustainable mining recommended by International Council on Mining and Metals (ICMM).

Preserving and augmenting biodiversity forms an essential element of HZL's dedication to sustainable progress. A distinct Biodiversity policy underscores our unwavering resolve to avert risks to biodiversity across all our operations. In alignment with this policy, we have embarked on the following endeavors aligned with our biodiversity policy https://www.hzlindia.com/wp-content/uploads/Biodiversity-Policy-2.pdf:

• Biodiversity assessment study has been conducted at all locations and all units are having biodiversity management plan (BMP).
• Developed a nursery for endangered species of Rajasthan at RAM and Kayad.
• Developed a Peacock Conservation Park at Kayad Mine
• Artificial Bird Nesting & feeding across all HZL units
• Development of butterfly garden at PMP
• Development of peacock & herbal bank at township of HO, Udaipur
• Hindustan Zinc Nurturing Biodiversity with Miyawaki Plantation at DSC, CLZS and ZSD
• Biodiversity Park at RDC
• Three Years engagement with IUCN for reassessment of Biodiversity risk
• Restoration of Jarofix yard at Chanderiya Lead Zinc smelter using Michorizza technology.
• Restoration of Waste dump at Rampura Agucha Mines
• Medicinal garden at KM, RDC and ZSD
• Implementation of wildlife conservation plan at CLZS, RDC and ZM

Moreover, in order to intensify our focus on sustainability and ESG (Environmental, Social, and Governance) considerations, a distinct committee known as the Sustainability & ESG Committee has been instituted at the Board level. This committee assumes the responsibility of formulating a comprehensive Sustainability Strategy, outlining long-term objectives and targets.

Our actions are aligned with Biodiversity Goal 2025 which aims to Protect and enhance biodiversity throughout the life cycle by adopting a mitigation hierarchy framework to achieve a state of 'No Net Loss'. We have also established a Biodiversity Community as part of the Executive Sustainability Committee. This dedicated community oversees all matters pertaining to biodiversity conservation-related risks.

F0.2

(F0.2) State the start and end date of the year for which you are reporting data.

	Start Date	End Date
Reporting year	April 1, 2022	March 31, 2023

F0.3

(F0.3) Select the currency used for all financial information disclosed throughout your response.

INR

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Hindustan Zinc CDP Forests Questionnaire 2023 Wednesday, September 13, 2023

F-MM0.9/F-CO0.9

(F-MM0.9/F-CO0.9) Select the option that best describes the reporting boundary for which biodiversity-related issues are being reported?

Companies, entities or groups over which operational control is exercised

F-MM0.10/F-CO0.10

(F-MM0.10/F-CO0.10) Within your reporting boundary, are there any geographical areas, business units or mining projects excluded from your disclosure?

Yes

F-MM0.10a/F-CO0.10a

(F-MM0.10a/F-CO0.10a) Please report your exclusions and describe their potential for biodiversity-related risk.

Exclusion	Description of	Potential for	Please explain
	exclusion	biodiversity-
		related risk
Other, please	Marketing	No potential	We have omitted marketing offices from
specify	Offices		consideration due to their negligible
Marketing			biodiversity-related risks and lack of direct
Offices			involvement in operational activities.

F9 Current state

F-MM9.1/F-CO9.1

(F-MM9.1/F-CO9.1) Provide details on the mining projects covered by this disclosure, by specifying your project(s) type, location and mining method(s) used.

Mining project ID

Project 1

Name

Rampura Agucha Mine

Share (%)

100

Country/Area

India

Latitude

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Hindustan Zinc CDP Forests Questionnaire 2023 Wednesday, September 13, 2023

25.5

Longitude

74.74

Project stage

Production

Mining method

Underground

Raw material(s)

Zinc

Lead

Year extraction started/is planned to start

1991

Year of closure

2040

Description of project

Rampura Agucha Mine (RAM) is an ISO 9001, ISO 14001, ISO 45001, ISO 50001 and SA-8000 certified underground zinc and lead mine. Located in the Bhilwara district of Rajasthan state, RAM is the largest and richest, lead-zinc deposit in the country and among the world's largest with 70.0 Mt of ore reserves and resources (R&R) with in situ average grade of 11.2% zinc and 1.3% lead on an exclusive basis as on end of FY 2022-23. The Rampura Agucha Mine (RAM) progressed on its performance trajectory, growing in terms of both ore and mined metal production. During FY 2022-23, total ore produced was 4.79 MT which includes 0.48MT Zinc and 0.000049 MT lead.

In FY 2022-23, RAM has received the following awards:

a. Rampura Agucha and Zawar mines received the GreenCo rating of silver b. Rampura Agucha rescue team won 1st prize in the First Aid Competition consecutively for the 5th time organised in the 36th mine safety week under the DGMS Ajmer regions

Mining project ID

Project 2

Name

Rajpura Dariba Mine

Share (%)

100

Country/Area

India

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Hindustan Zinc CDP Forests Questionnaire 2023 Wednesday, September 13, 2023

Latitude

24.57

Longitude

74.08

Project stage

Production

Mining method

Underground

Raw material(s)

Zinc

Lead

Year extraction started/is planned to start

1983

Year of closure

2040

Description of project

Our long-standing underground mine, Rajpura Dariba (RD) Mine, holds the distinction of being one of our oldest mines and has a reserve and resource of about 75 million metric tons of ore. RD Mine continued to improve on its performance metrics with highest ever ore production of 1.39 Mt during FY 2022-23. RDM took a series of automation and digitalisation initiatives during the year to improve processes and systems. Installation of CCTVs for continuous monitoring of operations, automation of dewatering and submersible pumps, monitoring and controlling of ventilation fan from the mine control room and biometric access control system were among the key initiatives launched by the team.

Awards Endorsing RDM's Excellence in FY 2022-23:

a. First prize in 'Overall Best Performer' category in All India Mine Rescue Competition (AIMRC)

1. Awarded '5-Star' by Ministry of Mines for exemplary performance in Implementation of Sustainable Development Framework
2. First prize in mineral beneficiation at 33rd MEMC week by Indian Bureau of Mines

Mining project ID

Project 3

Name

Sindesar Khurd Mines

Share (%)

5