Hindustan Zinc Limited, the world’s largest integrated zinc producer and a key player in India’s mining sector, has received approval from its board to initiate the first phase of a major expansion plan aimed at doubling its production capacity. This move, which involves an investment of approximately ₹12,000 crores, will see the company increase its refined metal capacity by 250 KTPA (kilotonnes per annum) along with expanding its mining and milling infrastructure across multiple locations.
The demand for zinc in India is expected to see significant growth over the next decade, largely driven by the expanding infrastructure sector and steel production, as per the International Zinc Association. Hindustan Zinc’s expansion plans are strategically aligned with this expected rise in demand for both domestic and international steel.
The company aims to increase its zinc and silver production capacity over the next five years, eventually achieving a total metal production capacity of over 2,000 KTPA and a silver production capacity of 1,500 tonnes. The approved project includes the establishment of a 250 KTPA integrated smelter in Debari, Udaipur, Rajasthan, alongside the necessary upgrades to its mines and mills. The expansion is projected to be completed within 36 months.
This expansion comes at a crucial time when the global zinc market is facing a continued supply deficit, making Hindustan Zinc’s growth plans even more impactful. Since being acquired by the Vedanta Group in 2002, the company has significantly boosted its zinc production, increasing output by four times, while silver production has surged more than 20 times. Hindustan Zinc is now one of the world’s lowest-cost zinc producers and holds the second-largest zinc reserves globally, with a mine life of over 25 years.
Arun Misra, CEO of Hindustan Zinc, shared his enthusiasm about the project, stating, “This expansion is a key step in scaling our production across zinc, lead, and silver, in line with India’s growing economic needs and increasing demand for zinc. We aim to make India more self-reliant in this sector, and we believe this will create immense value for all stakeholders while ensuring long-term growth and success.”
Hindustan Zinc is a leading global producer of zinc and silver, supplying to over 40 countries and holding a 77% share of India’s primary zinc market. Recognized for its commitment to sustainability, the company was named the world’s most sustainable in the metals and mining category by S&P Global in 2024. Hindustan Zinc also launched EcoZen, Asia’s first low-carbon zinc brand, which is produced using renewable energy and has a carbon footprint significantly lower than the global average. The company is dedicated to achieving net-zero emissions by 2050 and remains committed to its social welfare initiatives, positively impacting 2.3 million people.
