Kayad Mine Icon OPERATIONAL PERFORMANCE – SMELTERS AND CAPTIVE POWER PLANTS
UNLOCKING CAPACITY, DRIVING COST LEADERSHIP

Key Takeaway

  • Unlocked additional capacity from existing assets with minimal capital outlay through debottlenecking and throughput improvement measures
  • Reduced cost of production with focus on scrap and residue sales, operational reliability, and domestic coal usage
  • Technology deployment improved operational reliability, cost, and safety
  • Hindustan Zinc 2.0 priorities: Scaling digital and automation deployments and brownfield debottlenecking to drive low-cost capacity growth alongside the 2x expansion
Smelters and captive power plants visual

Smelters are the economic engine of an integrated metals and mining business – and ours are redefining what's possible. Our ongoing efforts to maximise output, save energy through process optimisation, and drive technology-led cost-efficiency contributed to our best-ever margins in FY2026. This year marks an inflection for our smelters, with the expansion programme moving into execution, alongside a step-change in throughput, efficiency, and reliability, which support the momentum that the next chapter of our growth requires.

Performance Snapshot FY2026

Smelter production

851 kt

Zinc (▲ 3%)

197 kt

Lead (▼ 13%)

627 MT

Silver (▼ 9%)

Power generation*

72.13 MU

Solar power (▲ 1%)

384.42 MU

Wind power (▲ 1%)

4,113.81 MU

Captive thermal power (▲ 2%)

285.62 MU

Waste heat recovery boiler power
(▲ 25%)

*Gross production

Excellence With Superior Smelting Technologies

Our smelters deploy advanced technologies and tools to produce high-quality zinc, lead, and silver from captive mine concentrates, supported by reliable in-house power. Digital technologies like real-time monitoring, automation, and data-led optimisation enhance process control, improve recoveries, and minimise variability. We ensure a circular and efficient operating model by effectively managing by-products (selling or captively consuming) produced during the smelting process.

Our smelting technologies and products diagram

Zinc grades

99.995% Zn

SHG (Special high grade)

99.95% Zn

HG (High grade)

98.65% Zn

PW (Prime western)

ZAMAK 3, ZAMAK 5,
CGG & ZAM and more

Multiple value-added products

Lead grade

99.99%

Purity Lead

Silver grade

99.99%

Purity Silver

Scaling Efficiency and Operational Throughput

Smelters

Measures Undertaken

Impact Achieved

Projects completed

Debottlenecked Chanderiya (Hydro II) and Dariba hydrometallurgical plants through installing new rectifiers, cooling towers, and horizontal belt filtration (HBF) units, and major pump overhauls

21 ktpa refined zinc production capacity unlocked, supported by an improvement in current from 200 kA to 212 kA

Installed an oxygen plant at the sinter in the pyrometallurgical plant at Chanderiya

9 kt additional metal production led by an enhancement in throughput by 2.2 TPH

Commissioned a new 160 ktpa roaster in Debari

Production bottlenecks removed supported by continuous calcine feed even during roaster shutdowns, which sustains full design throughput

Increased campaign life of the SKS plant in Dariba to the highest-ever 518 days through continuous monitoring of boiler panels and furnace brick lining

6 kt additional metal production
20 MT additional silver production

Highest-ever scrap and residue sale of ₹ 700 crore

US$ 93 per tonne reduction in zinc cost of production excluding royalty
Projects under execution

Replacing the older star cooler setup with a packed gas cooling tower (PGCT) to upgrade gas-cooling capacity

3 kt additional metal driven by a 0.8 TPH increase in throughput, enhancing process stability and expanding sinter plant capacity

Installing an innovative hot acid leaching plant in the Dariba cell house

6 kt lead and 27 MT silver recovery from hydrometallurgical zinc circuit by extracting low grade lead concentrate (LGLC) from leaching

Hindustan Zinc onboarded the globally renowned YKK (Yoshida Kogyo Kabushikigaisha) team for a quality inspection of the alloy plant. The visit highlighted the areas of quality improvement, while setting the foundation for high-value, quality-driven growth

Captive Power Plants (CPPs)

Measures Undertaken

Impact Achieved

Upgraded turbine blade profile for three steam turbine generator units

3.9 MW/year additional capacity unlocked with minimised mechanical losses

Maximised plant load factor (PLF) by operating units beyond technical feasibility

₹ 3.5 crore cost savings in FY2026

Increased domestic coal consumption to 53% in FY2026 vs 44% in FY2025

₹ 39 crore cost savings in FY2026

Operationalised a 4.8 MW solar plant in Dariba

100% operationalisation of 40.70 MW, aiding renewable energy integration
Captive power plant

Driving Tech-Powered Transformation

Technology For Better Asset Utilisation

During the year, we deployed technologies like computer vision, OT-IT convergence, and AI/ML to enhance asset utilisation.

Reliability

Sinter pallet grate bar monitoring and interlocking

Computer vision-based solution eliminates unplanned stoppages from grate bar anomalies in sinter machine pallets, improving plant availability and process stability

19%

Reduction in unplanned stoppages from the pallet grate bar

Reliability

Switchyard hotspot detection

Thermal vision-based solution replaces manual checks with real-time insights, enabling planned maintenance and sustained peak performance of switchyards

20%

Reduction in production losses from unplanned switchyard outages

Cost optimisation

Process optimisation through autonomous dosing

Deployed end-to-end OT-IT integrated, ML-based autonomous dosing system, optimising non-fuel chemical consumption across smelters

4%

Reduction in chemical consumption norms

Technology for Ensuring Sustainable Operations

During the year, we deployed technologies like robotic process automation and computer vision

Technology for ensuring sustainable operations Technology for ensuring sustainable operations

Advancing Process Safety

Safety at our smelters has moved decisively from procedural compliance to engineering-led elimination of risks. Key measures undertaken in FY2026 to scale process safety include:

Operating Responsibly at Scale

We advanced environmental performance at our smelters across four dimensions in FY2026:

Water conservation icon

Water conservation

  • 8.49 million KL out of 8.89 million KL of water consumption is from the sewage treatment plant
  • 28% recycled water usage
  • Installation of a new water treatment plant along with new roaster commissioning at Zinc Smelter Debari
Clean air icon

Clean air

  • Installation of tail gas treatment plant is in progress at Chanderiya hydrometallurgical plant
Circular economy icon

Circular Economy

  • 178 kt Jarosite utilised in cement industries, up 9% YoY
  • 475 kt Jarofix utilised in road construction, up 41% YoY
  • 101 kt reduction in Jarosite/Jarofix generation through improvement in fumer utilisation
  • 2.8 kt of metal and 11.9 MT of silver produced additionally by the fumer in FY2026 as compared to 3.1 kt and 6.1 MT, respectively, during the last year
Sustainable mobility icon

Sustainable mobility

  • Expanded green fleet to 180 liquified natural gas (LNG) vehicles and 52 electric vehicles (EVs) to reduce GHG emission
Operational team at site