Strategic Priorities
Moving Ahead to a Better Tomorrow
Having built a resilient business with industry-leading capabilities and consistently delivering steady performance, Hindustan Zinc is now focused on the next phase of growth and value creation. We are focused on strengthening our core, expanding into new opportunities, and embedding future-ready capabilities across the value chain. Together, these priorities position us to strengthen our long-term competitiveness and unlock greater shareholder value.
Maintaining a Portfolio of Mines with Long Life
Enhancing exploration efficiency to add mineral resources and convert them into higher-confidence reserves. With deposits at depth, we are intensifying drilling programmes, supported by advanced technologies and innovative exploration techniques. These efforts improve operational resilience and support mining practices, targeting over 500 Mnt of resources and 250 Mnt of reserves.
Actions taken in FY2026
- Increased total ore reserves to 219.1 Mnt (net of production of 16.6 Mnt), as against 189.1 Mnt at the end of FY2025; total exclusive mineral resource stood at 249.5 Mnt at the end of FY2026
- Combined R&R stood at 468.6 Mnt with 29.2 Mnt of zinc-lead metal and 24.2 kt of silver, supporting the vision of 2x production
- Highest-ever metal reserves since underground transition at c.13.9 Mnt and record silver reserves of c.10.9 kt
Way forward
Accelerate
- Add c.12 Mnt mineral resources, upgrade c.45 Mnt ore reserves
- Add metal of c.0.6 Mnt from resource addition and c.2.5 Mnt from reserve upgradation
- Active participation in base metal block auctions (focus on zinc and lead)
- AI/ML-led 3D deposit modelling and advanced geophysical surveys to identify potential target
Scale to support 2x
- Add c.10 Mnt mineral resources, upgrade c.50 Mnt ore reserves to support doubling of capacity
- Add metal of c.0.5 Mnt from resource addition and c.3.0 Mnt from reserve upgradation
- Continue to bid for base metal, critical and strategic mineral blocks
- Deepen technology-led exploration target generation with advanced geophysical surveys, AI/ML-driven analytics, 3D geological modelling, etc.
Sustain and expand
- Sustain existing leases and acquire new mining leases through auctions
- Continue leveraging exploration technology
- Achieve 50 Mnt of ore reserves and 25 years+ mine life
Expansion of Capacities
Invest in organic and inorganic capacity expansion and operational excellence to become the world’s largest and most admired zinc, lead, and silver company. A capex of ₹40,000-50,000 crore has been planned over the next five years to enhance refined metal capacity from 1.14 Mnt to 2.0 Mnt, with Phase-1 capex of c.₹17,000 crore approved by the Board in FY2026.
Actions taken in FY2026
- Commissioned a new 160 ktpa roaster at Debari, securing continuous feed to the cell houses and enhancing refined zinc production
- Debottlenecked the hydrometallurgical zinc smelters at Chanderiya Lead Zinc Smelter (CLZS) (Hydro-II) and Dariba Smelting Complex (DSC) with current increment from 200 kA to 212 kA, enhancing refined zinc capacity by 21 kt
- Initiated Phase-1 projects: Completed groundbreaking for the 250 ktpa integrated zinc smelting complex at Debari and 10 Mtpa tailings reprocessing plant at Rampura Agucha Mine (RAM)
- Technical and drilling partners are locked in for Rajpura Dariba and Zawar for advancing the 2x exploration programme
- Debottlenecked the shafts at RAM and Sindesar Khurd Mine (SKM)
- Excavated the box cut of Maa Annapurna portal at Rajpura Dariba Mine (RDM), along with associated surface civil works for further expansion
Way forward
Commission, debottleneck, build
- Commission 510 ktpa fertiliser plant at Chanderiya
- Commission a hot acid leaching plant to recover an additional c.6 kt of lead and c.27 MT of silver through the zinc route
- 20% productivity gain across the mines and new mining production centres at RDM and RAM
- Commence debottlenecking and redesigning work to enhance concentrator capacity from 19.3 Mtpa to 35 Mtpa
- Debottleneck Hydro-I in CLZS to increase current from 200 kA to 212 kA, adding 10 kt refined zinc capacity
- Commencing construction of a 200 ktpa lead smelter, a 650 TPA silver refinery, and a 400 ktpa zinc smelter (to be integrated into the initial 250 ktpa smelter)
- Install a packed gas cooling tower in the sinter plant to unload additional feed of 1 TPH
- Unlock 100% capacity at the Fumer plant to produce 33 MT of additional silver
- Change from batch to partial continuous operation in Ausmelt, adding 5 kt of metal and 10 MT of silver annually
Bring new sources online
- Commission Maa Annapurna portal at RDM and the tailing reprocessing plant at Rampura Agucha
- Change from batch to complete continuous operation in Ausmelt, adding 15 kt of metal and 30 MT of silver annually
- Commence Bamnia Kalan Mine (BKM) production
2x capacity
- Ramping up the 250 ktpa integrated zinc smelter at Debari
- Commissioning of 400 ktpa zinc and 200 ktpa lead smelters to scale refined metal capacity to 2,000 ktpa
- Commissioning of the new 650 TPA silver refinery to scale overall silver refining capacity to 1,500 TPA
- Enhance concentrator capacity to 35 Mtpa along with equivalent total mine capacity enhancement
Strengthening Cost Leadership
Remain among the lowest-cost zinc producers globally, staying in the first decile of the global zinc cost curve to support our growth strategy. This will be driven through sustained volume expansion, grade improvement, stronger by-product realisations, innovation, automation, digitalisation, and investment in renewable energy (RE).
Actions taken in FY2026
- Achieved a 5-year lowest zinc cost of production (COP) of US$ 959/MT (ex-royalty) through volume enhancement, improved operational and energy cost efficiencies, better grades, higher recoveries, and digital improvements, leading to cost savings of c.US$ 93/MT
- Reduced energy costs through:
- Sourcing c.18% RE power, including a 530 MW round-the-clock agreement
- Improving efficiency and the percentage of Indian coal in the blend, which reduced power generation costs by 10%
- Undertook various alternative fuel innovations, thereby pushing operational efficiencies
- Enhanced minor metal recovery, leading to higher by-product credits
- Reduced equipment cost, increased productivity, and rationalised deployment and improved utilisation of machines underground, leveraging digital tools
Way forward
Anchor the cost base
- Maintain zinc COP (ex-royalty) at US$ 975-1,000/MT through efficient ore hauling, higher volumes and grades, stronger by-product realisations, and productivity improvements enabled by automation and digitalisation
- Monitor geopolitical situation for proactive cost risk management
- Ensure RE power mix of 35% and Indian coal blend over 50%
Protect the advantage
- Continue FY2027 efforts and sustain zinc COP below US$1,000/MT
- Increase RE power share to 70%
Cost leadership at 2x capacity
- Maintain zinc COP (ex-royalty) at c.US$ 950/MT via proactive cost savings, increased scale of production, and continued operational efficiencies
Building a Diversified Product Portfolio
Invest in expanding existing products, innovative value-added products (VAP), new critical metals essential for the clean energy transition, and enhancing customer responsiveness to meet their evolving needs.
Actions taken in FY2026
- Developed and commercialised new products like zinc-aluminium-magnesium (ZAM) for steel customers and toning alloys for the domestic market
- Approval of HZDA5 diecasting alloy by a global zip manufacturer
- Partnered with Tata Steel and Silox India to commercialise our low-carbon zinc, EcoZen, among steel galvanising mills and high-end chemical manufacturers
- Secured letters of intent (LOIs) for three critical and strategic mineral blocks, including rare earth elements (REEs), potash, and tungsten (exploration commenced in Q4 FY2026)
Way forward
Broaden portfolio
- New VAP line as per customer requirement
- Complete utilisation of the existing alloy plant by onboarding new customers
- Start of zinc dust plant for the paint, chemical, and tyre industry
- Add critical minerals like lithium, copper, gold, and platinum group elements (PGEs) to meet the nation’s needs
Move up the value curve
- Commercialise new product market in 1.7 MT and 2 MT jumbos
- Commercialise customised alloy jumbos for the domestic and international market
A multi-metal enterprise
- Continue adding critical and strategic minerals
- Increase the overall VAP production capacity to 458 kt
- Maintain a future-focused mineral mix
Progressing Towards a Sustainable Future
Sustainability as a key growth driver, enabled by our ambitious Sustainability Goals 2030. We aim to become a nature-positive company with sustained actions to reduce our carbon footprint and advance our circular economy goals, a healthier and safer workplace, responsible sourcing, diversity and inclusion, and community development, etc.
Actions taken in FY2026
- Secured membership in the prestigious International Council on Mining and Metals (ICMM)
- Optimising carbon footprint:
- Increased RE power sourcing to c.18%, including 100% green power consumption at the Pantnagar Metal Plant
- Increased green inter-unit transport fleet to 180 liquified natural gas (LNG) trucks and 52 electric vehicle (EV) trucks across locations
- Increased water recycling rate through the use of recycled water from the filtered tailing plants at Zawar and Rajpura Dariba Mines
- Finalised biodiversity management plans for all locations in collaboration with the International Union for Conservation of Nature (IUCN)
- Transformed 22.25 hectares of Jarofix yard (industrial wasteland) at CLZS into a greenbelt by planting 54,400 native saplings
- Advancing circularity through 101 kt reduction in Jarosite via fumer plant and 654 kt utilisation of Jarosite and Jarofix in the cement industry, road construction, and railway infrastructure
- Developed a comprehensive tailings management plan, aligned with ICMM and the Global Industry Standard on Tailings Management (GISTM)
Way forward
Tangible multi-dimensional actions
- Additional tail gas treatment (TGT) plants
- Deployment of 41 EV buses across locations for employee commute
- Transition from wet to filtered tailing disposal facility at Rampura Agucha
- Advancing municipal sewage treated water use at CLZS
- Commission hot acid leaching plant for lead and silver recovery from smelting waste at Dariba
Restore and regenerate
- Permanent capping of phase 1 of Jarofix yard (10 hectares) through mycorrhiza technology at Dariba Smelting Complex (DSC)
- Initiation of natural forest at CLZS
Achieve Sustainability Goals 2030
- Reduce Scope 1 & 2 emissions by 50% and Scope 3 emissions by 25% in line with SBTi (Science Based Targets Initiative)
- Commission India’s first 10 Mtpa tailings reprocessing plant at Rampura Agucha