Hindustan Zinc approves Rs12,000 cr investment to boost capacity, set up new smelter in Rajasthan

Vedanta Group subsidiary company Hindustan Zinc has issued an official statement that its board of directors has approved an investment of Rs 12,000 crore to expand its integrated refined metal capacity by 250 kilo tonnes per annum (KTPA), along with associated mines and mills capacity across multiple locations.

According to the company statement, the Rs 12,000-crore investment will be made through internal accruals and debt. The move follows growth in zinc consumption, driven by strong demand in steel and infrastructure, the company said in a stock exchange filing.

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The statement is in line with the company’s previously announced plan to increase its capacity two-fold.

“The company plans to double its metal and silver capacities over the next five years, taking the total metal production capacity to over 2,000 KTPA and silver production capacity to 1,500 tonnes,” the release added, on Monday. The company’s current metal production capacity stands at 1,129 KTPA with an existing capacity utilisation of 93% in FY25.

Hindustan Zinc Chief Executive Officer Arun Mishra said in the statement, “We are excited to announce this 2x growth project towards doubling our capacity across zinc, lead and silver, which is strategically aligned with the country’s expanding economic landscape, increasing demand opportunities and keeping the country self-reliant in zinc. By closely matching the pace of national growth, we are confident that this will create significant value for our stakeholders and drive long-term success.”

The company’s board has approved the project to set up a new 250 KTPA integrated smelter at Debari in Udaipur district, Rajasthan, along with associated mines and mills expansion across its operations. The project is targeted to be completed in a period of 36 months. On an annualised basis, the Debari plant is expected to add around 45,000 tonnes of additional zinc production capacity.

Hindustan Zinc is among the leading zinc and silver producing companies in the world, which has operations in mining, smelting and refining of metals like zinc, lead and silver.

Besides Vedanta Group’s 63.42% stake in Hindustan Zinc, the Government of India also holds a 27.93% stake in the company.

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