Hindustan Zinc, a leading integrated producer of zinc, lead, and silver, has announced a significant investment in sustainable mining practices. The company's board has approved the establishment of India's first tailings reprocessing plant, marking a milestone in the country's mining industry.

Groundbreaking Investment in Sustainable Mining

Hindustan Zinc's board has given the green light for a capital expenditure of up to ₹3,823.00 crore to set up a 10 million tonnes per annum tailings reprocessing plant. This facility, the first of its kind in India, is designed to recover metals from accumulated tailing dumps, aligning with the company's ambitious 2X growth plan to double its capacity.

Environmental and Operational Benefits

The innovative project aims to achieve dual objectives:

1. Reduce the environmental footprint associated with traditional wet tailings disposal methods.
2. Improve mineral recovery, enhancing the efficiency of the mining operation.

This strategic move demonstrates Hindustan Zinc's commitment to sustainable mining practices and resource optimization.

Financial Performance

Alongside this significant investment announcement, Hindustan Zinc reported its recent financial results:

The company's quarterly consolidated net profit of ₹2,234.00 crore surpassed market estimates of ₹2,156.00 crore, despite a 4.70% year-on-year decline. However, revenue fell short of Street expectations of ₹7,850.00 crore, decreasing by 4.40% to ₹7,771.00 crore.

Market Response

The market's initial reaction to these developments was muted. Hindustan Zinc's shares closed at ₹426.00 on the National Stock Exchange (NSE), down 0.15%.

This strategic investment in the tailings reprocessing plant, coupled with the company's financial performance, underscores Hindustan Zinc's focus on sustainable growth and operational efficiency in the face of challenging market conditions.

Hindustan Zinc, a subsidiary of Vedanta, has announced an ambitious plan to double its production capacity to 2 million tonnes, aiming to significantly boost its revenue and profitability. The company has set its sights on achieving annual revenue of ₹62,000-65,000 crore and EBITDA of ₹34,000-36,000 crore.

Current Performance and Expansion Goals

Hindustan Zinc reported a revenue of ₹34,083.00 crore and an EBITDA of ₹17,465.00 crore. The company's expansion strategy is designed to nearly double these figures, showcasing its aggressive growth plans in the zinc industry.

Capital Expenditure and Capacity Enhancement

As part of its growth strategy, Hindustan Zinc has announced a substantial capital expenditure of ₹12,000.00 crore. This investment will be directed towards expanding the capacity of its Debari smelter by 250,000 tonnes, bringing the total capacity to 1.38 million tonnes. The company expects to complete this expansion over a period of 36 months.

Phased Approach to Growth

The initial phase of this expansion is targeted to yield impressive results:

These figures represent a significant increase from the company's current financial performance.

Silver Production Boost

In addition to zinc, Hindustan Zinc plans to more than double its silver production. The company aims to increase its silver output from the current 700 tonnes to 1,500 tonnes, further diversifying its product portfolio and revenue streams.

Operational Efficiency

Hindustan Zinc is not just focusing on capacity expansion but also on improving operational efficiency. The company projects a decrease in production costs from the current $1,052.00 per tonne to $1,000.00 per tonne, which could contribute to improved profit margins.

Government Stake

It's worth noting that the Indian government holds a significant stake of 27.92% in Hindustan Zinc, underlining the company's strategic importance in the country's mining sector.

This expansion plan demonstrates Hindustan Zinc's commitment to growth and its confidence in the future demand for zinc and silver. The successful implementation of this strategy could potentially strengthen the company's position in the global zinc market and create substantial value for its stakeholders.