Hindustan Zinc Plans $600 Million Investment for Capacity Expansion

Hindustan Zinc Ltd plans to invest between $500 million and $600 million during the current financial year to increase production capacity and improve mining and metal operations. Chief Executive Officer Arun Misra stated that 80% of this capital expenditure is dedicated to projects already under execution, with the remaining 20% reserved for new projects to be announced shortly.

The company is working toward a long-term expansion goal of 1 million tonnes of capacity. A 250,000-tonne phase has received approval and involves an investment of Rs 12,000 crore; smelter construction has begun and mining orders have been placed.

To reach a capacity of 650,000 tonnes, the company expects further investments averaging Rs 7,000-8,000 crore annually over the next four to five years. Only 15-20% of that multi-year expansion plan will result in cash outflows during the current fiscal year.