Hindustan Zinc’s capex plan aims to invest $2-2.5 billion to double its metal production over the next five years. This ambitious capex plan seeks to increase zinc, lead, and silver output to over 2 million tonnes. To achieve this, the company will partner with global contractors for mine expansion and development, strengthening its position in the industry.
Targeted investments to enhance Hindustan Zinc’s capacity
The $2-2.5 billion capex plan will significantly enhance Hindustan Zinc’s capacity across existing operations. In the coming weeks, the company will finalize contracts with two Australian mining firms. These contractors will develop mine infrastructure, helping the company achieve its ambitious production goals. In addition, Hindustan Zinc is working with consultants to assess greenfield and brownfield sites, aiming to increase zinc smelting capacity.
Arun Misra, the CEO of Hindustan Zinc, explained the need for structured mine development to reach the 2-million-tonne production goal. “For this,” Misra stated, “we are engaging global contractors. By the end of November, we expect to appoint a global contractor for mine development.”
Expansion goals for Hindustan Zinc’s Zinc, Lead, and Silver output
Under the new capex plan, Hindustan Zinc will double its zinc capacity to 2 million tonnes. Lead and silver production will also grow from 800 tonnes to 2,000 tonnes. The expansion will roll out in phases, allowing the company to increase production gradually. By FY25, Hindustan Zinc aims to reach 1.2 million tonnes of mined metal, as outlined in its production guidance.
Misra confirmed that the company is on track to achieve its FY25 targets. “Our target for FY25 remains 1.2 million tonnes in mined metal,” Misra said. “We plan to boost production to 1.3 million tonnes in the following year.”
Focused strategy on Hindustan Zinc’s logistics and smelting capacity
Hindustan Zinc’s expansion strategy will also address logistical improvements, including concentrator upgrades to handle higher material volumes. The company’s zinc smelting capacity currently exceeds 913,000 tonnes per year, and its six Rajasthan mines and three smelters will play a central role in meeting the new targets.
With this major investment, Hindustan Zinc seeks to strengthen its market position and meet India’s growing demand for metals. The capex plan, supported by internal funding and debt, reinforces Hindustan Zinc’s commitment to becoming a global leader in zinc, lead, and silver production.
