At Hindustan Zinc, we have identified, and remain consistently focussed on investing in our Strategic Priorities. Our efforts to strengthen these priorities are driven by our future targets and goals. They are crafted to pave the way for increased growth and value creation across key metrics, to give the Company and its stakeholders many more reasons to celebrate their collective journey.
To leverage the emerging global opportunities, we are continually investing in expanding our production capacities. We have established 1.2 Mtpa of mined metal capacity and are now working on further expanding the same. Going forward, we are aiming to further ramp-up our underground mines to deliver on the designed capacity of 1.2 Mtpa. A new beneficiation plant is also planned at Rajpura Dariba Mines to increase treatment capacity from 1.1 Mtpa to 1.5 Mtpa. Also in the future, we plan to commission a new ZLD plant at Rampura Agucha and Zawar. In addition, at Balaria, which is part of Zawar group of mines, new production centre is under consideration. Further, with the supporting mined metal flow, smelters are geared to touch approx. 1,000 – 1,025 kt. We are also planning to include one more roaster in our smelting operations, followed by expansion of our leaching and cell house capacity (currently under Board approval). The commissioning of Fumer is also proposed to be completed in FY 2022-23.
By FY 2024-25, we expect to further ramp-up capacity of underground mines to 1.35 Mtpa capacity. With commissioning of new zinc smelter of 150 kt capacity, zinc metal production will increase and contribute to achieve the envisioned refined metal capacity. We also target to scale-up silver production to 800 MT and gradually to 1,000 MT in line with our vision to be in top 3 global primary silver producers from the 6th position currently.
We remain concertedly focussed on increasing the longevity of our mines to drive future growth and value. As of March 31, 2022, our total ore reserves stands at 161.2 million tonnes (net of depletion of FY 2021-22 production of 16.3 million tonnes), as against 150.3 million tonnes at the end of FY 2020-21. The increase was on account of our heightened focus on resource to reserve conversion. Our Exclusive Mineral Resource totalled 286.73 million tonnes at the end of FY 2021-22, while the combined R&R was estimated to be 448 million tonnes, including 31.1 million tonnes of zinc-lead metal and 874.7 million ounces of silver. The overall mine life continues to be over 25 years.
In the next phase of our growth, we are targeting ore generation at Kayad and Rampura Agucha Mines by integrating application of artificial intelligence & machine learning with existing geological data in FY 2022-23. We are also looking at increased exploration to enhance our Mineral Resource by 20 Mt Ore (with contained metal of 1.0 Mt), which we aim to further augment by another 40 Mt Ore by FY 2024-25 (with contained metal of 2.0 Mt).
It is estimated that ore reserves upgradation of 28 Mt will translate into a total R&R of 470 Mt in FY 2022-23. We shall also seek to secure SK north / SK south PL and other new tenements for R&R growth which will further increase total R&R to 500+ Mt, with ~35 Mt Metal by FY 2024-25. Going forward, we shall focus on application of advance geophysics techniques for target generation in strike/down dip extension of mineralisation.
Prudent cost management is important to deliver value-led, sustainable growth. Led by this belief, we successfully maintained our focus on improving cost efficiencies during the year.
Despite disruptions triggered by COVID-19, we posted record ore production of 16.3 million tonnes, while mined metal production stood at 1,017 kt and refined zinc-lead production at 967 kt. The Dariba Zinc Smelter posted its highest ever production, with 92% efficiency. The production increased was facilitated by our focussed initiatives to promote operational and cost excellence. These included completion of the cell house revamp at Zinc Smelter Debari (ZSD), commissioning of Advanced Process Controllers (APCs) at the beneficiation plants of Rampura Agucha and Sindesar Khurd Mines, and commencement of Zinc Oxide treatment at Fumer Circuit CLZS for additional FG production. Digitisation and automation, along with power optimisation and innovative transportation and shaft hauling processes, further helped promote cost excellence.
During FY 2022-23, we shall strive to maintain cost of production between US$ 1,125 - US$ 1,175 per tonne through efficient ore hauling, higher volume and grades, as well as higher productivity, through our automation and digitalisation initiatives. We shall work towards maintaining all cell house operations at their currently efficiency levels of 92% without any interruption of MIC. We plan to run Pyro on Lead mode to reduce the Zinc COP, and also to improve Lead and Silver production.
Further ahead, by FY 2024-25, through our continued focus on delivering volumes, keeping a tight watch on cost rationalisation and operational efficiencies, we aim to reduce cost of production to below US$ 1,000 per tonne. We shall further undertake automation and mechanisation of the Dariba Lead cell house and Debari cell house to reduce cost and concurrently increase efficiency and recovery.
To cater to the increasing minor metal demand, we are looking at scaling up our capacities for minor metal recovery, going forward. We are also investing in the development of new products through downstream applications. Our key focus area in this context is innovation of new products in lead alloys and increased penetration of zinc alloys.
We are also continuously scaling up Value Added Product (VAP) production in our primary metals portfolio. We produce two types of VAP – 1) Continuous Galvanising Grade (CGG), which is used by Steel Galvanizing companies, with the final product finding use in construction, and 2) Hindustan Zinc Die Casting Alloy (HZDA), which is used by Die Casting companies, with the final product being utilised by the automobile and architectural sector.
With both the construction and auto sector picking up along with renewed focus on smart city and infrastructure projects is generating high demand for customised products. Through our subsidiary HZAPL, we are increasingly focussing on meeting domestic demand for zinc alloy products to enhance our VAP portfolio as a go-to-market strategy.
Thereby, our share of VAP increased to 20.0% in FY 2021-22 from 15.5% in the previous year and target to increase it to 24% by FY 2024-25.
Hindustan Zinc has consciously adopted a strategic approach that is crafted to drive its efforts to progressively reduce its carbon footprint. Our audacious Sustainability Goals 2025, as well as voluntary & progressive ESG-related disclosures in line with global best-practices, underline our commitment to responsible growth. They underscore our concerted efforts towards reduction in GHG emissions reduction, along with water stewardship, circular economy, biodiversity conservation and waste management. Innovation is central to our 3R (Reduce-Reuse-Recycle) waste approach and adoption of greener technologies to the maximum possible extent.
The constitution of a Board-level ESG Committee is a major step forward in steering us towards the realisation of our Sustainability Goals. We are continuously striving to promote conservation of natural resources and restore the natural land and water systems to drive our transition to a circular economy. Responsible local sourcing is another key facet of our focus on powering a circular economy. Introduction of battery-electric vehicles (BEVs) in underground mines is a major step taken by the Company, a COP26 business leader, to drive it closer to achieving carbon neutrality.
In FY 2022-23, we are looking at migration to 100% mechanised charging at Zawar for improved safety, faster charging and increased pull per blast. Cognisant of our ESG and Net-Zero goals, we are also looking at establishment of 200 MW green power to reduce COP, besides modification of the existing circuits to enable waste management through Jarosite utilisation.