Hindustan Zinc?s board OKs to establish tailings reprocessing plant in Rajasthan

Hindustan Zinc said that its board has approved to set up a tailings reprocessing plant at Rampura Agucha, Bhilwara, Rajasthan, aimed at recovering metals from the tailing dumps.

The said project is part of the company?s plan to double its production capacity. The new plant, with a capacity of 10 million tonnes per annum (Mtpa), will be developed with an investment up to Rs 3,823 crore and is targeted for completion within 28 months from the zero date.

Tailings are the finely ground remnants left after mineral extraction. While these are considered as waste, they have plenty of residual metals and minerals which are difficult to extract. This facility will extract metals like zinc and silver from previously processed tailings, transforming waste into valuable resources.

Earlier this year, the company?s board had approved the first phase of investments aimed at doubling the company?s production capacity. These plans include expanding refined metal capacity by 250 kilotonnes per annum (KTPA) and upgrading mines and milling infrastructure across multiple locations, with an investment of nearly Rs 12,000 crore. These expansions aligned with India?s projected doubling of zinc demand over the next five to ten years, driven by major investments in infrastructure and the steel sector.

Commenting on the development, Hindustan Zinc?s chief executive officer, Arun Misra, said: ?We are proud to launch India?s first tailings reprocessing plant at Rampura Agucha, developed in partnership with global experts. This facility enables us to reprocess historical waste and store it responsibly, in line with high environmental standards. It strengthens our unique value proposition and supports our ambitious 2x growth vision while advancing our broader sustainability commitments. Modern tailing operations also create opportunities to innovate and recover a broader range of metals that are important for technological progress and the energy transition.?

Hindustan Zinc, a Vedanta Group company, is an integrated producer of zinc, lead and silver. As of June 2025, Vedanta held 61.84% stake in the company.

The company?s consolidated net profit fell 4.7% to Rs 2,234 crore on 3.8% fall in net sales to Rs 7,591 crore in Q1 June 2025 over Q1 June 2024.

The scrip shed 0.06% to Rs 427 on the BSE.

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