Hind Zinc Expects ₹12,000 Cr Expansion to Help Cut Costs

Board okays investment for new smelter at integrated zinc metal complex in Rajasthan

- Dipali Banka

Hindustan Zinc Ltd (HZL) has kicked off an expansion project worth ₹12,000 crore to add a capacity of 250 kilo tonnes per annum (ktpa), marking the first phase of its ambitious plan to double metal output over the next few years.

The company's board on Tuesday approved the investment to add a new smelter at its integrated zinc metal complex in Debari, Rajasthan. The investment also includes expanding production capacity at associated mines.

The Vedanta Ltd subsidiary had earlier indicated that it will increase its capacity to 2 million tonnes per annum (mtpa) from 1.1 million tonnes at present.

"You may expect in 2-3 months, a number of announcements, totalling 2 million tonnes. This is the first part of that," Arun Misra, chief executive officer (CEO) of Hindustan Zinc Ltd, said on Tuesday.