Hindustan Zinc to invest ₹12,000 crore in doubling production capacity amid rising domestic demand

Hindustan Zinc, the country’s largest and the world’s leading integrated zinc producer, is gearing up for a bold capacity expansion with a ₹12,000-crore investment in the first phase of its growth strategy. The company’s board has approved a major project to enhance its integrated refined metal capacity by 250 kilotonnes per annum (KTPA), backed by matching expansions in mines and mills across multiple sites. 

This strategic move comes as India braces for a doubling of zinc demand over the next five to ten years, driven largely by infrastructure investments and a growing steel sector. Hindustan Zinc’s roadmap envisions doubling its total metal production capacity to over 2,000 KTPA and silver output to 1,500 tonnes in the next five years. The expansion includes the establishment of a new 250 KTPA smelter at Debari in Udaipur district, Rajasthan, with a targeted completion timeline of 36 months. 

“The 2x growth project across zinc, lead, and silver is closely aligned with India’s expanding economic ambitions and is aimed at ensuring self-reliance in zinc production,” said Arun Misra, CEO of Hindustan Zinc. “We are confident this will create significant stakeholder value and long-term success.” 

The announcement comes against the backdrop of a continued global deficit in the zinc market. Hindustan Zinc, a Vedanta Group company, already commands 77% of India’s primary zinc market and is one of the lowest-cost producers globally. The firm also holds the second-highest global zinc reserves and resources, with more than 25 years of mine life remaining.

Since the government’s disinvestment in 2002 and Vedanta’s subsequent acquisition, Hindustan Zinc has quadrupled its zinc output and expanded silver production over 20 times. Today, the company serves over 40 countries and has been ranked the world’s most sustainable metals and mining company for two years in a row by S&P Global’s Corporate Sustainability Assessment. 

In April, Hindustan Zinc said that it has integrated women in the night shift at the Surface (Mill) in underground mining at Rampura Agucha, which is home to the world’s largest underground zinc mining operations in Bhilwara, Rajasthan, in a major step towards gender diversity and equality in a male-dominated industry.