Hindustan Zinc to invest ₹12,000 Crore in Udaipur Smelter, capacity expansion

Hindustan Zinc Limited has announced a board approved the first phase of a huge expansion plan to double production capacity. The company will spend approximately ₹12,000 crore to grow its integrated refined metal capacity by 250 kilotonnes per annum (KTPA) and, coinciding with that production growth, its mining and milling capacity also.  

The project includes a 250 KTPA integrated smelter to be built in Debari, located in the Udaipur district of Rajasthan. The expansion aligns with the International Zinc Association forecasts: doubling India's zinc demand is predicted over the next 5-10 years, as infrastructure grows and steel consumption accelerates. 

Presently, Hindustan Zinc makes approximately 1.1 million tonnes of metal; with the expansion they will increase total metal production capacity to over 2,000 KTPA and silver production capacity to 1,500 tonnes in 5 years. The new expansion is anticipated to be complete in 36 months.  

Per the company, it is part of a wider strategy to secure India's self-reliance for zinc use and tap international demand in the continued supply deficit. Hindustan Zinc is a Vedanta Group company, the government disinvested ownership in 2002. It is among the world's lowest-cost zinc producers with the second largest zinc reserves and resources in the world. 

"This 2x growth project is aligned with the expanding economic landscape the country is experiencing, facilitating the demand increase in zinc, lead, and silver", said Arun Misra, CEO, Hindustan Zinc.