Hindustan Zinc to invest ₹3,823 cr to build tailings reprocessing plant

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Hindustan Zinc Ltd’s (HZL’s) board has approved an investment of ₹3,823 crore for a zinc tailings reprocessing plant in Rampura Agucha, Bhilwara district, Rajasthan, the company said in an exchange filing.

 

The new plant, with a capacity of 10 million tonnes per annum (mtpa), is targeted for completion within 28 months. The company plans to double its production capacity.

 

Arun Misra, chief executive officer (CEO), Hindustan Zinc, said: “It supports our ambitious 2x growth vision while advancing our broader sustainability commitments. Modern tailing operations also create opportunities to recover a broader range of metals that are important for energy transition.”

 

The company said it aims to reduce its carbon footprint with the facility. “This one-of-a-kind plant, a first in India, will enable reduction of the environmental footprint associated with traditional wet tailings disposal, enhance HZL’s overall mineral recovery, and usher in improved sustainability,” HZL stated.

 

A tailings reprocessing plant extracts valuable metals from tailings dumps — leftover material from ore processing — boosting overall mineral recovery. The facility aims to extract zinc and silver from previously processed tailings.

 

Earlier this year, the board approved investment plans aimed at doubling the company’s production capacity. These plans included expanding refined metal capacity by 250 kilotonnes per annum (ktpa) and upgrading mines and milling infrastructure, with an investment of nearly ₹12,000 crore.

 

Sustainable realignment 

On August 12, the mining major announced its membership in the International Council on Mining and Metals (ICMM), becoming the first Indian company to join the global body of 25 mining and metals firms dedicated to sustainable development.

 

“HZL is the first company from India to join this council. It reaffirms our commitment to sustainability, innovation, and responsible resource development, while creating new opportunities to collaborate with some of the world’s most respected leaders in mining,” Priya Agarwal Hebbar, chairperson of Hindustan Zinc, said on August 12.

 

She added that as a member of the council, HZL will comply with 40 performance expectations covering environmental, social, and governance standards, with third-party verification across all its assets.

 

IiAS scrutiny 

On August 17, three proposed resolutions of Hindustan Zinc, set for the board’s consideration, drew scrutiny from voting advisory firm Institutional Investor Advisory Services India (IiAS).

 

The main resolution flagged was the reappointment of HZL’s whole-time director and chief executive officer, Arun Misra. While IiAS supported his continuation as CEO, it raised concerns over the proposed terms of his remuneration.

 

According to disclosures, Misra received remuneration of ₹13.54 crore from HZL in FY25, along with stock options worth ₹6.37 crore from holding company Vedanta, taking his total package to ₹19.9 crore. IiAS estimated that his overall remuneration for FY26 could rise to about ₹31.42 crore.