Hindustan Zinc to invest ₹12,000 crore to double refined metal capacity

Board approves expansion of metal and silver capacity to over 2,000 KTPA and 1,500 tonnes respectively, with new smelter and mines to be built over the next 36 months

Hindustan Zinc's board of directors approved an investment of ₹12,000 crore on Monday for expanding its integrated refined metal capacity by 250 kilotonnes per annum (KTPA), along with associated mines and mills capacity across multiple locations.

 

This investment will be made through internal accruals and debt, and follows growth in zinc consumption driven by strong demand in steel and infrastructure, the company said in a stock exchange filing. It is also the zinc and lead producer’s first phase of investment for its goal of doubling the company’s capacity, it added in the release.

 

“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. The company’s current metal production capacity stands at 1,129 KTPA with an existing capacity utilisation of 93 per cent in FY25.

 

“We are excited to announce this two times 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 for zinc,” said Arun Misra, Chief Executive Officer, Hindustan 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.”

 

Additionally, the board approved the project for setting 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.

 

Earlier, in an interaction with Business Standard, Misra said that on an annualised basis the Debari plant is expected to add around 45,000 tonnes of additional zinc. These expansion plans come at a time when a continued global deficit in the zinc market is being observed, with Misra expecting zinc prices to be under pressure in FY26.