Hindustan Zinc Plans $2B Expansion, Eyes Doubling Production by 2027

27 Oct 2024 , 02:48 PM

Hindustan Zinc, a Vedanta Group company, plans to invest up to $2 billion (around ₹17,000 Crore) to double its production capacity to 2 million tonnes over the next few years, according to CEO Arun Misra.

Consultants have been hired to support the capacity expansion, and the company is actively seeking mining partners to meet its production goals.

Targeted capacity milestones include 1.2 million tonnes in 2025, 1.35 million tonnes in 2026, and 1.8 million tonnes in 2027, with an ultimate goal of reaching 2 million tonnes.

The required investment, estimated between $1.95 and $2 billion, is achievable due to existing mining infrastructure, expected to cost approximately ₹14,000 to ₹17,000 Crore.

Misra noted that restructuring discussions are ongoing with stakeholders, while the government’s disinvestment plans for Hindustan Zinc could influence these developments.

Hindustan Zinc is the world’s second-largest integrated zinc producer and ranks third globally in silver production, supplying to over 40 countries and holding a 75% share in India’s primary zinc market.

The company reported a 34.5% increase in consolidated net profit, reaching ₹2,327 Crore for Q2 2024, driven by higher income compared to ₹1,729 Crore in the previous year. Revenue rose to ₹8,522 Crore for the July-September quarter, with ₹6,403 Crore from zinc, lead, and other segments and ₹1,550 Crore from the silver division.