New Delhi: Hindustan Zinc Ltd (HZL), a Vedanta Group company, plans to invest around Rs 5,000 crore in the current financial year to expand its production capacity and strengthen its mining and metal operations.
The company said most of this investment will go towards projects that are already under execution, while the remaining amount will be used for new projects expected to be announced soon.
Focus on ongoing projects
Speaking to PTI, Hindustan Zinc Chief Executive Officer Arun Misra said the company expects to spend USD 500-600 million, or around ₹5,000 crore, during FY27.
He said around 80 percent of the planned capital expenditure has been allocated to ongoing projects. The remaining 20 percent will be invested in new expansion plans that the company is preparing to unveil.
Capacity expansion continues
Misra said the company's long-term expansion programme aims to increase its total project capacity to around 1 million tonnes.
Out of this, expansion of 250,000 tonnes has already received approval. This phase involves an investment of about Rs 12,000 crore and covers mining development as well as mineral processing.
According to the company, mining equipment orders have already been placed, while construction work for the new smelter has begun. Orders related to milling and concentrate processing are expected to be finalised in the coming months.
More investment over next five years
The remaining expansion plans will require investment of a similar scale to increase production capacity further to 650,000 tonnes.
Misra said this investment will be spread over the next four to five years, translating into an average annual capital expenditure of around Rs 7,000-8,000 crore.
However, only 15-20 percent of this multi-year investment is expected to result in actual cash outflow during the current financial year.
Hindustan Zinc is India's leading producer of zinc, lead and silver. Backed by the Vedanta Group, the company operates fully mechanised underground mines and advanced smelting facilities. Vedanta Ltd owns 60.71 percent of the company, while the Government of India holds a 27.92 percent stake.
