Vedanta Group company Hindustan Zinc plans to pump in up to $2 billion (about Rs 17,000 crore) to double its production capacity to two million tonnes in the next few years, its CEO Arun Misra said.
The company, which has already engaged with consultants to increase its capacity, is looking for mining partners for the same, Misra told PTI. “We have a plan to double production to 2 million tons… So, I’m sure that by the end of this quarter, we should be able to make project announcements, which plans, how much and where.” he explained.
The company aims to produce 1.2 million tonnes (MT) in 2025, followed by 1.35 MT in 2026 and 1.8 MT in 2027, Misra said. “And eventually, at some point, we should be able to get two million tons,” he explained.
When asked about the investment the company plans to make to increase production capacity, he said, “Because most of the mining infrastructure is there, so, it’s between two billion dollars or 1.95 or 2 billion dollars, about, say, Rs 14,000 to Rs 17,000 is the currency that will be required.
Regarding plans to restructure the company, he said discussions are still ongoing and the parties are talking regularly. He went on to say that since the government is busy with the fraud of Hindustan Zinc, it also depends on that. “So, one of them will happen,” he explained.
Hindustan Zinc is the world’s second largest integrated zinc producer and third largest silver producer. The company supplies more than 40 countries and has a market share of about 75 percent in the primary zinc market in India.
The company on Friday reported a 34.5 percent rise in consolidated profit to Rs 2,327 crore for the quarter ended September 30, 2024, on the back of higher revenue.
The company had posted a net profit of Rs 1,729 crore in the previous period. Revenue for the July-September period rose to Rs 8,522 crore from Rs 7,014 crore in the corresponding quarter of the previous fiscal.
The company earned Rs 6,403 crore from zinc, lead and other components and Rs 1,550 crore from silver vertical in the second quarter.
