Hindustan Zinc Unveils Ambitious Rs 30,000-35,000 Crore Expansion Plan to Double Metal Production
Hindustan Zinc announces a major expansion strategy to double its annual metal production from 1 million to 2 million tonnes over the next 3-5 years. The company plans to invest Rs 30,000-35,000 crore in this self-funded initiative. CEO Arun Misra revealed plans to increase mining capacity from 17 million to 21-22 million tonnes annually, collaborating with an Australian consultant to boost operational efficiency by 30%. The expansion includes extending existing mines and constructing over 100 km of tunnels yearly. All orders for new smelters, concentrators, and mine expansion are set to be placed by November 2025. Hindustan Zinc aims to keep production costs below $1,000 per ton to maintain competitiveness.

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Hindustan Zinc , a leading integrated producer of zinc, lead, and silver, has announced a bold expansion strategy aimed at doubling its metal production capacity over the next three to five years. The company plans to invest between Rs 30,000 crore and Rs 35,000 crore to achieve this significant growth.
Expansion Details
CEO Arun Misra revealed that Hindustan Zinc aims to increase its annual metal production from the current 1 million tonnes to 2 million tonnes. This ambitious plan is supported by the company's substantial ore reserves, which stand at 450 million tonnes, equivalent to 30 million tonnes of metal. These reserves are sufficient to sustain the planned expansion.
Operational Efficiency and Mining Capacity
To facilitate this growth, Hindustan Zinc is collaborating with an Australian mining consultant to boost operational efficiency by 30%. The company intends to increase its annual mining capacity from 17 million tonnes to 21-22 million tonnes. This expansion will involve both horizontal and depth extensions of existing mines, with plans to construct over 100 kilometres of tunnels annually.
Financial Strategy
Hindustan Zinc's expansion will be entirely self-funded, leveraging the company's robust financial performance. With an estimated annual profit after tax of Rs 10,000.00 crore, the company will not need to resort to debt financing for this massive undertaking.
Timeline and Implementation
The company has set an ambitious timeline for its expansion plans:
- All orders for new smelters, concentrators, and mine expansion will be placed by November 2025.
- The expansion is expected to be completed within three to five years.
Cost Management and Market Position
To maintain its competitive edge in the global market, Hindustan Zinc aims to keep production costs below $1,000.00 per ton. This cost-effective approach will be crucial as the company significantly increases its production capacity.
Market Response
Investors have responded positively to the announcement, with Hindustan Zinc's shares trading 2.66% higher at Rs 464.95 on the day of the news release.
This expansive growth plan underscores Hindustan Zinc's commitment to strengthening its position in the global metal market and capitalizing on the increasing demand for zinc, lead, and silver.
Historical Stock Returns for Hindustan Construction Company
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+4.00% | +3.59% | +1.64% | +4.88% | -31.74% | +472.75% |