Hindustan Zinc to Become World's Largest Integrated Zinc-Lead Producer

-- Expanding capacity to 1,065,000 tpa, making HZL the largest
integrated zinc-lead producer in the world and achieving
stated capacity goal of 1 million tonnes per annum

-- Silver production expected to increase to 500 tonnes per year

-- Strong reserves and resources position of 232.3 million tonnes
containing a total of 27.5 million tonnes of zinc-lead metal
MUMBAI, India--(Business Wire)--
Hindustan Zinc Limited ("HZL") has announced expansion projects
that will take its total integrated zinc-lead capacity to 1,065,000
tonnes per annum with fully integrated mining and captive power
generation capacities, thereby making HZL the world's largest
integrated zinc-lead producer by 2010. HZL will continue to maintain
its superior cost leadership position among the zinc producers in the
world. Two brownfield smelter projects, which will increase the
production capacities of zinc and lead by 210,000 tonnes and
100,000 tonnes respectively, will be undertaken at Rajpura Dariba in
Rajasthan, India.

HZL expects to increase its silver production from the current
levels of approximately 100-120 tonnes per year to a level of
approximately 500 tonnes per year in the form of silver and silver
bearing residue. A large part of this increase would be from the
Sindesar Khurd mine where silver occurrences are approximately at
levels of 200 ppm and from the use of appropriate technology in the
new smelters.

The expansion is supported by HZL's strong reserves and resources
of 232.3 million tonnes containing 27.5 million tonnes of zinc-lead
metal at 31 March 2008. The reserves and resources position have been
earlier independently reviewed and certified as per the JORC standard.

To support the increased smelting capacities, HZL will expand its
ore production capacity at the Rampura Agucha mine from 5 mtpa to
6 mtpa. Further, ore production at the Sindesar Khurd mine, the new
star in HZL's mining portfolio, will be increased from 0.3 mtpa to
1.5 mtpa. HZL will also start mining activity at the Kayar mine which
will have a production capacity of 0.3 mtpa.

In line with the group's philosophy of being a fully self reliant
producer of power, a captive thermal power plant with a capacity of
160MW will also be set up at Rajpura Dariba.

The zinc and lead smelters as well as the 160MW captive power
plant and the Rampura Agucha mine expansion will be complete by
mid-2010. The expansions at the Sindesar Khurd and Kayar mines will be
completed in phases by early 2012.

The total investment in these projects is estimated at
Rs. 3,600 crore. This investment includes the cost of the smelters,
captive power facilities, mine development and shaft sinking and other
infrastructure. The expansion will utilise the same technology and
project management skills that successfully delivered the
Chanderiya II expansion project ahead of schedule.

About Hindustan Zinc

HZL is India's only integrated producer of zinc and lead and among
the world's leading integrated producers. Its metal production
capacity is nearly 670,000 tpa with its smelter operations situated in
Chanderiya, Debari and Visakhapatnam. HZL has zinc-lead mines in
Dariba, Rampura Agucha, Sindesar Khurd and Zawar. The company is a
subsidiary of the NYSE listed, Sterlite Industries (India) Limited
(NYSE:SLT) and London listed FTSE 100 diversified metals and mining
major, Vedanta Resources plc.

Disclaimer

This press release contains "forward-looking statements" - that
is, statements related to future, not past, events. In this context,
forward-looking statements often address our expected future business
and financial performance, and often contain words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "should" or
"will." Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. For us, uncertainties arise
from the behaviour of financial and metals markets including the
London Metal Exchange, fluctuations in interest and or exchange rates
and metal prices; from future integration of acquired businesses; and
from numerous other matters of national, regional and global scale,
including those of a political, economic, business, competitive or
regulatory nature. These uncertainties may cause our actual future
results to be materially different that those expressed in our
forward-looking statements. HZL does not undertake to update its
forward-looking statements.

for Hindustan Zinc Limited
Sumanth Cidambi, +91-22-6646-1531
Associate Director - Investor Relations
sumanth.cidambi@vedanta.co.in
Sheetal Khanduja, +91-22-6646-1427
Manager - Investor Relations
sheetal.khanduja@vedanta.co.in

Copyright Business Wire 2008