"Hindustan Zinc Targets Output Doubling with Major Expansion Plans"

Hindustan Zinc, a subsidiary of the Vedanta group, is set to double its annual output with an ambitious expansion plan. The company expects to complete pre-feasibility studies by mid-September on boosting production from its eight mines in India to 2 million tonnes. This includes 1.6 million tonnes of zinc, 2,000 tonnes of silver, and approximately 0.4 million tonnes of lead.

The expansion also includes plans to double the capacity of its existing concentrators and smelters. Arun Misra, CEO of Hindustan Zinc, revealed that two global consulting firms from Australia have been engaged to conduct these studies. The mines are being assessed in two groups of four, while the second consulting firm is evaluating the capacities at the company's manufacturing facilities.

Misra noted that the final reports are expected by mid-September, after which the company will present the findings to the Board for approval. Despite the substantial scale of the expansion, Misra is confident that funding will not be an issue, citing Hindustan Zinc's market capitalization of over $34 billion and sufficient resources for the planned capital expenditures.

Hindustan Zinc is the world's second-largest zinc miner and third-largest silver producer. For the April to June period, the company reported a 2% year-on-year increase in mined metal production to 263,000 tonnes. Refined zinc metal production reached 211,000 tonnes, and saleable lead production was 51,000 tonnes.

In line with Vedanta’s demerger plans, Hindustan Zinc will focus exclusively on its resources in India, while Vedanta Resources will pursue mining opportunities overseas for copper and other minerals. The company is also eyeing critical mineral mining in India, including graphite and gold. Despite being outbid in recent critical mineral auctions, Misra indicated that Hindustan Zinc will continue to participate in future auctions as new blocks become available.

HBL