Hindustan Zinc Limited (HZL), a Vedanta Group company, is planning a substantial investment of up to $2 billion over the next few years to double its production capacity in response to growing demand. The company aims to expand its annual zinc production from 1.2 million tonnes to nearly 2.5 million tonnes by 2027, with additional increases in lead and silver output. This expansion aligns with the firm’s strategy to cater to India’s infrastructure and industrial development needs, where zinc plays a key role in steel galvanization and infrastructure projects.
According to CEO Arun Misra, this capital investment will support not only physical capacity expansion but also enhance operational efficiencies through advanced technology and sustainable practices. With Vedanta’s commitment to sustainability, the planned facilities will incorporate green energy solutions and recycling processes to reduce emissions and waste in line with global environmental standards. Misra highlighted that the increase in capacity would address the rising demand for zinc and other metals essential for various sectors, including automobile manufacturing, construction, and renewable energy projects.
The expansion will primarily take place at HZL's existing facilities in Rajasthan, with a focus on increasing the output of high-grade zinc and lead, critical for industrial applications and high-end manufacturing. Additionally, a portion of the investment will go towards digitalization and automation efforts, furthering HZL’s goal of creating smart mining operations to streamline processes and minimize environmental impact.
HZL’s growth strategy reflects its response to global market dynamics and aligns with India’s objective of mining sector self-reliance to reduce dependency on imports for key metals. As demand continues to rise domestically and globally, HZL’s expansion is expected to solidify its position as a leading zinc producer, while contributing to India’s sustainable development goals through eco-friendly and efficient production practices. The company envisions a future-ready zinc production framework that supports India’s infrastructure growth while maintaining a strong focus on sustainable mining practices.
