Hindustan Zinc’s $1 Billion Expansion: Strategic Push into Critical Minerals and Production Growth

Investment Strategy and Growth Plans

Hindustan Zinc, a Vedanta-owned enterprise, has unveiled an ambitious $1-1.1 billion (₹8,500 crore) phase-I growth capex plan, marking a significant shift in its strategic direction. CEO Arun Misra revealed that the Board’s approval for this transformative investment is expected within a month, as the company focuses on consolidating its operations in India while pausing its previous demerger plans.

Financial Performance and Metrics

The company has demonstrated robust financial performance in FY25, with significant improvements across key metrics. Revenue reached ₹34,083 crore, marking an 18% year-over-year increase, while EBITDA grew by 28% to ₹17,465 crore. The company’s financial health is further evidenced by its strong profit after tax of ₹10,353 crore, representing a 33% increase.

Expansion and Production Details

Hindustan Zinc has outlined comprehensive expansion plans across its mining operations. The company is targeting significant output expansion at its Rampur Agucha and Sindeswar Kurd mines, while simultaneously developing six additional mining sites including Rajpura Dariba, Zawar, and Kayad. The company has already appointed consultants and mine development operators to facilitate this expansion.

Strategic Shift and Future Focus

The company has strategically pivoted from its earlier demerger plans and overseas acquisition strategy. This shift aligns with parent company Vedanta’s focus on scaling up operations at its Zambian copper mines. Hindustan Zinc is now concentrating on strengthening its presence in India, with a particular emphasis on critical minerals and precious metal production.

Critical Minerals Initiative

As part of its India-focused strategy, Hindustan Zinc has secured strategic mining leases, including a tungsten block in Andhra Pradesh and a gold mining block in Rajasthan. CEO Misra indicated that mining operations at these new blocks are expected to commence within two to three years, following completion of documentation processes and exploratory activities. This expansion marks the company’s evolution from a base metal miner to a diversified producer of precious and critical minerals.

Hindustan Zinc’s ambitious expansion plan represents a significant milestone in India’s mining sector development. The company’s strategic focus on domestic operations, coupled with its push into critical minerals, positions it for substantial growth while contributing to India’s mineral security and industrial development objectives.