Hindustan Zinc Limited has announced a major expansion plan with the Board approving the first phase of investments to double its production capacity. In a move aligned with India's growing infrastructure and steel demand, the company will invest nearly INR 12,000 crore to increase its integrated refined metal capacity by 250 kilotonne per annum (KTPA), supported by corresponding expansion in mines and mills across multiple locations.
The initial phase includes setting up a new 250 KTPA integrated smelter at Debari in Udaipur, Rajasthan. The expansion aims to raise Hindustan Zinc’s total metal production capacity to over 2 million tonnes per annum and silver output to 1,500 tonnes over the next five years—up from the current metal capacity of 1.1 million tonne. The project is expected to be completed within 36 months.
This strategic move comes amid a persistent global zinc supply deficit and rising domestic demand, which the International Zinc Association expects to double in the next 5 to 10 years. Hindustan Zinc’s capacity boost not only positions it to capitalise on growing global and Indian steel demand but also supports the nation’s goal of self-reliance in critical materials.
Since its acquisition by Vedanta Group post-government disinvestment in 2002, Hindustan Zinc has scaled zinc production fourfold and silver output by over 20 times. The company now holds the second-largest zinc reserves and resources globally, ensuring more than 25 years of mine life. It also ranks among the world’s lowest-cost zinc producers.
Arun Misra, CEO of Hindustan Zinc, said, “By matching the pace of national growth and strengthening our self-reliance in critical metals, this expansion will deliver long-term value for our stakeholders and reinforce our global leadership in zinc production.”
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