Key Highlights
Hindustan Zinc Limited’s board has approved the setting up of India’s first 10 million tonnes per annum (MTPA) tailings reprocessing plant, marking a capital expenditure commitment of up to Rs 38.23 billion.
The plant aims to repurpose mining waste (tailings) into valuable resources, significantly advancing environmental, operational, and economic benchmarks for the Indian mining sector.
Strategic Importance of Tailings Reprocessing
Tailings are the byproducts of mineral processing. Traditionally, they are stored as waste, often posing environmental risks if not managed correctly.
By deploying cutting-edge reprocessing technology, Hindustan Zinc will recover additional zinc, lead, and silver from existing tailings, reducing ecological impact and boosting overall output from previously mined material.
The plant will implement international best practices for safety, effluent management, and environmental restoration, setting a new industry standard for sustainable mining.
Scope of Investment and Execution Timeline
The Rs 38.23 billion investment includes advanced machinery, automation tools, water treatment systems, and facility infrastructure to ensure efficient tailings extraction and recovery.
Construction is expected to begin immediately, with an ambitious target to operationalize the 10 MTPA plant within the next three years.
The expenditure is part of Hindustan Zinc’s larger expansion drive aimed at doubling total production capacity and growing annual revenue to Rs 65,000 crore by 2030.
Environmental and Economic Impact
The new tailings reprocessing plant will mitigate mining waste issues, decrease reliance on virgin ore, and support energy-efficient metals recovery.
Hindustan Zinc’s push into tailings reprocessing aligns with its commitment as the first Indian miner to join the International Council on Mining and Metals (ICMM), signaling global-grade compliance.
This green initiative will create direct and indirect employment in engineering, operations, and environmental management while positively impacting local communities.
Competitive Position and Sector Context
With the government’s increasing stake in mining sustainability and infrastructure, the project positions Hindustan Zinc as a leader in responsible and resource-efficient metals production.
The expansion supports India’s ambitions in critical minerals, zinc, and silver—securing future supply chains for domestic manufacturing and export.
Forward-Looking Strategy
Hindustan Zinc continues to invest in technology for operational efficiency, aiming to reduce production costs from $1,052 per tonne to $1,000 per tonne.
The latest board approval is expected to contribute significant incremental revenue and cash flows by increasing the proportion of extracted saleable metals.
The plant will also serve as a model for other miners in India, catalyzing a paradigm shift towards circular economy principles in heavy industry.
Conclusion
Hindustan Zinc’s Rs 38.23 billion tailings reprocessing plant represents a landmark for sustainable mining and resource maximization in India. By converting mining waste into commercial opportunity and environmental stewardship, the company is at the forefront of operational innovation, positioning itself—and the broader sector—for robust, responsible growth.
Source: Business Upturn, August 18, 2025
