Hindustan Zinc to invest up to $2 billion to double production capacity: CEO Arun Misra

Vedanta Group company Hindustan Zinc It plans to pump up to $2 billion (about Rs 17,000 crore) to double production capacity to 2 million tonnes in the next few years, CEO Arun Misra said.

Misra said the company, which is already working with consultants to increase its capacity, is looking for mining partners for the same PTI.

“We have a plan to double production to 2 million tons… I am sure that by the end of this quarter we should be able to make project announcements, which projects are taking place, in how much and where.” explained.

Misra said that the company targets a production capacity of 1.2 million tons (mt) in 2025, 1.35 mt in 2026 and 1.8 million tons in 2027.

“And finally one day we should be able to get 2 million tons,” he explained.

• Also read: Arun Misra, CEO: Hindustan Zinc’s demerger plan will unlock value amid rising silver prices

When asked about the investment the company plans to make to increase its production capacity, he said: “Somewhere between $2 billion or $1.95 or $2 billion as most of the mining infrastructure is in place, we can roughly say: ₹14,000 crore to ₹17,000 crore of the type that would be required.” “it’s money.”

He said discussions on the company’s restructuring plans are ongoing and stakeholders meet regularly.

He also said that the government is also working on stopping investment in Hindustan Zinc, so there is a dependence on that too.

“So one of these things will happen,” he explained.

Hindustan Zinc is the world’s second largest integrated zinc producer and third largest producer of silver. The company supplies to more than 40 countries and holds nearly 75 percent of the primary zinc market in India.

The company on Friday reported a 34.5 per cent increase in consolidated net profit to ₹2,327 billion for the quarter ended September 30, 2024, driven by higher revenue.

The company announced a net profit of 1.729 billion rupees in the same period of the previous year.

Revenue in the July-September period increased to ₹8,522 crore from ₹7,014 crore in the same quarter of the previous fiscal.

The company earned revenue of ₹6,403 crore from zinc, lead and other segments and ₹1,550 crore from the silver vertical in the second quarter.