Hindustan Zinc intends to construct a facility capable of processing ten million tonnes of tailings each year. As reported by The Hindu BusinessLine, this unit will focus on recovering zinc and critical minerals, including germanium, from mining residue. Amarendu Prakash, the chief executive, indicated that the project should begin operations in approximately two years. The firm has finished its conceptual designs and engineering tasks and is now in the implementation stage. However, the total capital expenditure remains undecided while the company evaluates different metallurgical and chemical methods for metal extraction.
During an interview with The Hindu BusinessLine, Prakash outlined that the initiative comprises two distinct parts: managing the tailings via hydro-mining and extracting metals from the rich material. He characterized the approach as a novel technology with few global precedents. Prakash noted that rising metal prices and improved extraction techniques are rendering previously discarded waste economically useful. He described this shift as turning yesterday's waste into today's ore.
Financially, the firm aims to lower its manufacturing costs. Amit Gupta, the chief financial officer, told The Hindu BusinessLine that the average cost of producing zinc is projected to be between $825 and $850 per tonne for the year. This is a significant reduction from the previous target of roughly $1,000. The company maintains its volume guidance and anticipates meeting its targets in the latter part of the fiscal year. Gupta also predicted that costs would drop and volumes would rise in the December quarter relative to the September period. For silver, the annual production goal stands at 680 tonnes, with over 320 tonnes already produced in the first half.
To support these operations, Hindustan Zinc aims to expand its mining output from 18 million tonnes to 35 million tonnes within the next two to five years. Prakash suggested that aging mines and lower ore grades might limit global zinc supply. The firm is creating specialized zinc alloys to absorb this extra output and has established a zinc park in Rajasthan to attract downstream manufacturers. Furthermore, the company is advancing exploration in four critical mineral blocks in India, with two additional contracts expected to be finalized soon. Prakash noted that the 2026 refined zinc market faces a projected shortfall of 180,000 tonnes, reinforcing the need for cost-efficient production.