Hindustan Zinc shares surge 1.5% as firm gets board nod for 10 MTPA tailings reprocessing plant worth ₹3,823 crore

At around 10:20 am, the company’s stock was trading 0.37% higher at ₹428.70 per equity share.

The new unit, which is expected to be completed in 28 months, will be established as part of the company's plan to double its production capacity, it stated in a regulatory filing on Monday, following the market close.

In a statement, the company said, "Its board has approved the establishment of India's first zinc tailings reprocessing plant at Rampura Agucha, Bhilwara district, Rajasthan."

Tailings are the finely ground remnants left after mineral extraction. While these are considered waste, they have plenty of residual metals and minerals. The reprocessing unit will extract metals like zinc and silver from previously processed tailings, transforming what was once considered waste into valuable resources, the company 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.

"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 Chief Executive Officer Arun Misra said.

Earlier this year, the board approved the first phase of investments aimed at doubling the company's production capacity.

The company said it also plans to expand refined metal capacity by 250 kilotonnes per annum and upgrade mines and milling infrastructure across multiple locations, with an investment of nearly Rs 12,000 crore.

The expansions are strategically aligned with the country's projected doubling of zinc demand over the next five to 10 years, driven by major investments in infrastructure and the steel sector, it said.

Hindustan Zinc Q1 FY26 Results

The company reported a 4.7% decline in consolidated net profit at ₹2,234 crore for the quarter ended June 30, 2025 (Q1 FY26) on account of a decline in revenue.

The company had posted a net profit of ₹2,345 crore in the year-ago period, HZL said in a filing to BSE.

Revenue during the first quarter of FY26 dropped to ₹7,591 crore from ₹7,893 crore logged in the year-ago period.

In a statement, HZL said the decline in revenue was due to reduced volumes and decreased prices for zinc and lead commodities, although this was somewhat compensated by increased silver prices, a stronger dollar, and better by-product realisations.

Total expenses during April-June FY26 dropped to ₹5,065 crore over ₹5,284 crore seen in the year-ago period, the filing said.

Hindustan Zinc is the world's largest integrated zinc producer and amongst the top five silver producers globally. The company holds a market share of about 77% of the primary zinc market in the country.