Hindustan Zinc Announces ₹12,000 Crore Investment to Double Production Amid Zinc Demand Surge.

Hindustan Zinc Ltd (HZL), the nation's leading zinc and silver producer and a subsidiary of Vedanta, is set to embark on a significant expansion drive with a planned investment of ₹12,000 crore over the next three years. This substantial capital injection aims to double the company's mined metal capacity to 2 million tonnes.

According to Arun Misra, HZL's Managing Director and CEO, the investment will be phased over 36 months, with ₹3,000 crore allocated for the fiscal year 2026, ₹5,000 crore for FY27, and the remaining ₹4,000 crore in FY28. Misra confirmed to businessline that the company will finance these ambitious expansion plans through a combination of internal cash generation and debt.

The initial phase of this expansion will target at least two of HZL's existing mines. Furthermore, a "Phase-II" expansion plan is currently under development, which will encompass other mines in the company's portfolio. This detailed plan is expected to be presented to the board for approval in the near future.

Misra also revealed that HZL had previously engaged two global consulting firms to assist in strategizing and planning for these growth initiatives. The substantial investment underscores HZL's commitment to capitalizing on the robust demand for zinc and strengthening its position in the global metals market.