Hindustan Zinc to Invest Rs. 12,000 Cr. to Boost Zinc Production by 250 KTPA
Hindustan Zinc Ltd. (HZL), a subsidiary of the Indian metal giant Vedanta, will be investing about Rs. 12,000 crore to increase its Zinc production capacity by 250 Kilo Tonne Per Annum (KTPA). This investment will be directed towards expanding mining, milling and smelting operations of the company.
HZL’s board approved this investment on 17th June 2025.
HZL to Invest Rs. 6,200 Cr. to Develop Debari Integrated Zinc Complex
Hindustan Zinc will invest Rs. 6,200 crore out of the total amount to develop an integrated Zinc complex in Debari, near Rajasthan’s Udaipur. This complex will house a 250 KTPA smelter, along with an associated leaching and purification plant, and cell house. Apart from this, a 150 KTPA roaster will also be established at Debari.
This project has an expected completion period of 36 months, and HZL will fund it through a combination of internal accruals and debt.
New Complex Substantial Addition to HZL’s Total Capacity
HZL’s upcoming Debari complex will be a substantial addition to its total production capacity. The company’s current metal production capacity sits at around 1.1 Million Metric Tonne Per Annum (MMTPA) out of which its Zinc smelting capacity is 0.92 MMTPA. Therefore, the Debari complex will take HZL’s total metal production capacity to about 1.35 MMTPA and its Zinc smelting capacity to 1.17 MMTPA. This represents over 27% increase in HZL’s zinc smelting capacity.
In FY25, HZL produced 1.05 MMT of saleable metal, out of which refined zinc was 0.83 MMT. As per the company, its capacity utilisation was at about 93% during FY25.
Company to Pump in Rs. 5,800 Cr. to Expand Ore Production Capacity
Apart from the Debari complex, board has also given approval to expand Zinc mining and milling operations, which will add 4.6 MMTPA to its ore production capacity. About Rs. 5,800 crore will be invested by HZL for this purpose.
This involves expanding production at HZL’s Rampura Agucha mines and Kayad mine by a total of 1.3 MMTPA. Production at HZL’s Rajpura Dariba mine will be augmented by 2.5 MMTPA, and by 0.8 MMTPA at HZL’s Zawar mine near Udaipur.
These expansion operations are expected to take HZL’s total ore production capacity to 23.9 MMTPA from the current 19.3 MMTPA.
During an investor call, Mr. Arun Misra, Chief Executive Officer of HZL, shared that expansion at Rampura Agucha mines will be carried out first because of the high grade of Zinc available in these mines.
Investment a Part of HZL’s 2030 2x Growth Plan
Mr. Arun Misra, said that the company is embarking on a two-fold growth project to double HZL’s total metal production capacity. The company is targeting a total metal production capacity of 2 MMTPA by 2030 with an estimated total investment of Rs. 32,000-35,000 crore in phases. This includes zinc, lead, and silver production.
Mr. Misra explained, “This growth will be supported by all the mines together by increasing the overall ore production to 31 million tons from the existing 19.3 million tons”.
He highlighted that this project is in line with the country’s growing economy, increasing demand, and the aim to ensure self-reliance in Zinc production. He added, “By closely matching the pace of national growth, we are confident that this will create significant value for our stakeholders and drive long-term success”.
Mr. Misra added that more announcements about the company’s 2x expansion plan can be expected during the ongoing financial year.
India’s Zinc Demand to Double in Next 5-10 Years
HZL’s release mentioned that the Debari complex is expected to address India’s growing demand for Zinc. This demand is primarily driven by the Steel and Infrastructure industries, as one of the primary uses of Zinc is to galvanise Steel. Over the next 5-10 years, India’s Zinc demand is expected to double, as per the International Zinc Association. During a May 2024 interaction with PTI, International Zinc Association Global Director Martin Van Leeuwen had said, “The market for primary and refined zinc in India is currently close to 800 to 1,000 tonnes (per annum) and has a great opportunity to increase with all the developments that we are witnessing in India”.
About Hindustan Zinc Ltd.: Hindustan Zinc Limited, a subsidiary of Vedanta Group, is a leading producer of zinc, lead and silver in India. Based in Udaipur, the company operates major mining and smelting plants in Rajasthan and Uttarakhand. Hindustan Zinc reported a revenue of Rs. 34,083 crore crore and consolidated Profit After Tax (PAT) of Rs. 10,353 crore during FY-25.
