Hindustan Zinc, owned by Vedanta and India’s largest zinc and silver producer, has initiated a $2-2.5 billion (₹30,000 crore) capex plan to double its metal production to over 2 million tonnes, “at least five-year period”.

The company, in the coming weeks, will be engaging global contractors who would look at mine expansion and development.

Mined metal will include doubling zinc capacity to 2 mt, lead and silver from 800 tonnes to 2000 tonnes.

The company recently roped in a couple of international consultants - two Australian mine-planning and mine-contracting entities. It has also engaged a consultant to work on expanding zinc smelting capacity, a mix of greenfield and brownfield diversification.

According to Arun Misra, CEO, Hindustan Zinc, the report they have said the mines have to be developed in a particular manner to make adequate ore for 2 million tonnes.

“So for that, we are now inviting discussions with mining contractors who are global players. The mines have to be expanded. And around November-end or so, we should be able to fix the global contractor, whom we will appoint for starting the mine development,” he told businessline during an interaction. Mine development apparently is the first part, following which production can take place.

“Investments will be around $2 – 2.5 billion or so, and it will be a through a mix of internal accruals and debt. We are working out the details and will be presenting it before the Board soon. However, these investments will be spread over a few years,” Misra added.

For FY25, the company has guided for a mined metal production of 1.2 mt and in H1 its production was around 0.52 mt.

“So we are on course with our guidance. And sequentially mined metal capacities will be upped, say from 1.2 mt to 1.3 mt in the following year and so on,” he said.

The FY25 guidance also include 1.075 - 1.1 mt refined metal, and 750-775 tonnes saleable silver, with mined metal target of 1.2 mt to be achieved in FY26.

During the recent analyst call, the Hindustan Zinc top brass said, expansion of capacity (mined metal) includes working-out on the logistics of how to transport the material out of the mine and then the concentrator expansion. Both these are “feasible and very easy to do”.

“As far as this 2 million tonne is concerned, project is feasible. There is no doubt on that. It is only the mining contractor’s appointment and to see how the adequate metal in concentrate can be produced from the mine,” the CEO had said.

The company has however not shared how the production will be split across its existing mines. It operates six mines, all of which are located in Rajasthan. It has three smelter. Zinc smelting alone accounts of over 913,000 tonnes per annum.

“Let the project be done. But of course, we would love to have as much production from Agucha because that is the highest grid. And the biggest expansion that can happen with the current operations from is in Zawar mine, where (virgin) resources are available. So we will have to make a combination,” Misra further said during the call.

Consultant firm Systematix in a recent report said the company’s growth trajectory “appears to be fully priced in,” and “the growth here-on is hinged on smelter capacity expansion and commissioning of the fertilizer plant in FY26”.

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