Hindustan Zinc to Invest Rs 120 Bn in Capacity Expansion

18 Jun 2025 CW Team

The project will increase the company’s current metal production capacity from 1.1 million tonnes to over 2 million tonnes annually over the next five years. Hindustan Zinc also aims to raise its silver production capacity to 1,500 tonnes during the same period.

The expansion comes at a time when global zinc markets are facing sustained deficits, and India’s domestic demand for zinc is expected to double within the next 5–10 years, fuelled by investments in infrastructure and steel manufacturing.

The approved development will be completed over a 36-month timeline. The new Debari smelter and related mining infrastructure aim to meet rising domestic requirements and support global demand, reinforcing the company’s status as a cost-efficient global leader.

Since the Indian government divested its stake in 2002 and the Vedanta Group acquired the business, Hindustan Zinc has quadrupled its zinc production and increased silver output over twentyfold. The company now holds the world’s second-largest zinc reserves and resources, with a mine life exceeding 25 years.

Commenting on the investment, Arun Misra, CEO of Hindustan Zinc, said, “We are excited to announce this 2x growth project to double capacity in zinc, lead and silver. This initiative is aligned with India’s expanding economic needs and supports the nation’s self-reliance in zinc. By matching the pace of national growth, we aim to create significant stakeholder value and ensure long-term success.”

Hindustan Zinc remains one of the world’s lowest-cost zinc producers, and its expansion reinforces its commitment to securing future demand while strengthening India’s industrial foundation.

Hindustan Zinc Limited, India’s only and the world’s largest integrated zinc producer, has announced Board approval for the first phase of a major expansion to double its refined metal production capacity. The plan involves an investment of nearly Rs 120 billion (Rs 12,000 crore) and includes setting up a new 250 KTPA (kilotonnes per annum) integrated smelter at Debari, in Rajasthan’s Udaipur district, along with corresponding expansions in mines and mills across its operations.The project will increase the company’s current metal production capacity from 1.1 million tonnes to over 2 million tonnes annually over the next five years. Hindustan Zinc also aims to raise its silver production capacity to 1,500 tonnes during the same period.The expansion comes at a time when global zinc markets are facing sustained deficits, and India’s domestic demand for zinc is expected to double within the next 5–10 years, fuelled by investments in infrastructure and steel manufacturing.The approved development will be completed over a 36-month timeline. The new Debari smelter and related mining infrastructure aim to meet rising domestic requirements and support global demand, reinforcing the company’s status as a cost-efficient global leader.Since the Indian government divested its stake in 2002 and the Vedanta Group acquired the business, Hindustan Zinc has quadrupled its zinc production and increased silver output over twentyfold. The company now holds the world’s second-largest zinc reserves and resources, with a mine life exceeding 25 years.Commenting on the investment, Arun Misra, CEO of Hindustan Zinc, said, “We are excited to announce this 2x growth project to double capacity in zinc, lead and silver. This initiative is aligned with India’s expanding economic needs and supports the nation’s self-reliance in zinc. By matching the pace of national growth, we aim to create significant stakeholder value and ensure long-term success.”Hindustan Zinc remains one of the world’s lowest-cost zinc producers, and its expansion reinforces its commitment to securing future demand while strengthening India’s industrial foundation.

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