Udaipur: Hindustan Zinc Ltd’s (HZL) Board of Directors on Tuesday approved the initial plans for expanding its integrated refined metal capacity by 250 KTPA (kilotonnes per annum) along with matching mines & mills capacity across multiple locations with an investment of nearly Rs 12,000 crore.
India’s demand for zinc is projected to double over the next 5-10 years, driven by significant investments in infrastructure, including steel production, according to the International Zinc Association. HZL’s expansion aligns with the strong growth expected in domestic and global steel demand.
The company plans to double its metal and silver capacities over the next five years, taking the total metal production capacity to over 2,000 KTPA and silver production capacity to 1500 tonnes.
The Board has approved the project for setting up a new 250 KTPA integrated smelter at Debari in Udaipur district (Rajasthan) along with associated mines & mills expansion across its operations. The company’s current metal production capacity stands at 1.1 million tonnes. The project is targeted to be completed in a period of 36 months with an overall cost of nearly Rs 12,000 crore.
Since the government disinvested its stake in 2002 and subsequent acquisition by Vedanta Group, the company’s zinc production has grown 4 times while silver production has grown more than 20 times.
The company is amongst the lowest cost zinc producers globally and holds the 2nd highest zinc reserves & resources globally with over 25 years of
mine life.