Hindustan Zinc Approves ₹12,000 Crore Phase-I Expansion To Double Metal Output

Image Source : Outlook Money

Hindustan Zinc Ltd has announced the approval of Phase-I of its ambitious 2x growth strategy, aimed at doubling its production capacity across zinc, lead, and silver verticals. The ₹12,000 crore investment will be deployed over the next 36 months to meet rising domestic and global demand for critical metals.

Project Scope And Infrastructure

- A new 250 kilotonnes per annum integrated smelter will be set up at Debari in Udaipur, Rajasthan
- Matching expansions in mining and milling capacities will be undertaken across multiple operational sites
- The project will increase total refined metal capacity to over 2 million tonnes and silver output to 1,500 tonnes annually
- Hindustan Zinc currently operates at 93 percent utilization of its 1.1 million tonne capacity

Strategic Rationale And Market Impact

- India’s zinc demand is projected to double over the next 5–10 years, driven by infrastructure and steel sector growth
- The expansion aligns with national goals of self-reliance in critical minerals and supports global supply amid zinc shortages
- The company remains among the lowest-cost zinc producers globally and holds the second-largest zinc reserves

Outlook

This expansion reinforces Hindustan Zinc’s leadership in sustainable mining and energy transition metals. With over 25 years of mine life and strong ESG credentials, the company is positioned to deliver long-term value to stakeholders.

Sources: Hindustan Zinc Press Release, Times of India, Economic Times, CNBC TV18, Manufacturing Today India