Hindustan Zinc's Rs. 12,000 Cr Expansion Plan Hits Shares by 4%

• HZL approves Rs. 12,000 crore expansion to boost zinc capacity by 250 ktpa
• Rising global and domestic zinc demand drives strategic investment
• HZL now controls 77% of India's primary zinc market share

Hindustan Zinc Limited (HZL), India's largest producer of zinc and silver, announced on Tuesday that its board has approved a Rs. 12,000 crore expansion project. The company will add 250 kilo tonnes of integrated refined metal manufacturing capacity every year for three years with the investment.

This marks the first phase in the company's ambitious strategy to nearly double its overall metal production to 2 million tonnes per year by 2030. HZL, which was a government-owned firm and is now owned by Anil Agarwal-led Vedanta Group, is gearing up to supply the increasing domestic and international demand for zinc, an essential raw material in the production of steel.

The approved development comprises the building of a new 250 ktpa integrated smelter at Debari within Rajasthan state's Udaipur district. The project comprises associated improvements of the company's mining and milling operations throughout the region.

World demand for zinc has been consistently outstripping supply, and Indian demand for the metal would double within 5–10 years due to high growth in steel production and infrastructure construction. Zinc is essential for wide applications in anti-corrosion of steel and, therefore, it is an extremely vital product for construction, auto, and energy industries.

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Hindustan Zinc CEO Arun Misra said, “Scaling up our 2x growth program to align with the nation's infrastructure plans and industry requirements and growth in the zinc, lead, and silver cluster will also help India achieve its vision of making the country self-sufficient in zinc production.”

The company now stands as one of the world's lowest-cost zinc producers and the largest reserve base and resources base for zinc in the world, with more than 25 years of mine life remaining. HZL today holds around 77 percent of India's base zinc market.