HZL to invest Rs 12k cr to build smelter plant in Raj; ramp up mining as it eyes doubling capacity

New Delhi, Jun 17 (PTI) Vedanta group firm Hindustan Zinc Ltd (HZL) on Tuesday said it will invest nearly Rs 12,000 crore for setting up a zinc smelter plant at Debari, Rajasthan as well as ramping up the mining capacity.

Giving the break-up of the amount, company's Chief Executive Officer Arun Misra told PTI over phone that while around Rs 6,500 crore would be spent on the smelter, the remaining Rs 5,500 crore would be used for mining.

"...the smelter plant will come with the roaster, fumer, cell house, melting casting at the Debari plant. And the mine's capacity will increase and milling largely will come at the Rajpura Dariba mine and some of the things in Zawar and Agucha mines," he explained.

He further said that the smelter plant is expected to be complete in 2.5 to three years.

"I have been promising the market for last 3-4 months that we are working on 2 million tonne expansion..So, this is the first phase. 250 KTPA smelter with its own concentrator and then mine expansion is complete in all respects...In the next one-two months time, further announcements will be made till we close the entire loop for 2 million tonne expansion of Hindustan Zinc," he explained.

As part of 2x growth plan, HZL board has approved plans for expanding its integrated refined metal capacity by 250 KTPA (kilo tonne per annum) along with matching mines & mills capacity with an investment of Rs 12,000 crore, according to a BSE filing.

The company's current metal production capacity is 1.1 MTPA.

HZL had earlier said that it aims to double its metal production capacity to 2 million tonne per annum (MTPA) within the next five years. HZL is the world's largest integrated zinc producer and is amongst the top five silver producers globally.

The company supplies to more than 40 countries and holds a market share of about 77 per cent of the primary zinc market in India.

It had reported a 47.3 per cent year-on-year increase in consolidated net profit at Rs 3,003 crore for March quarter 2025 on the back of higher income. Income increased to Rs 9,314 crore from Rs 7,822 crore in the year-ago period. PTI SID ANU ANU