Hindustan Zinc to Double Lead and Zinc Capacity

Hindustan Zinc

HZL Approves Major Expansion in Rajasthan

Hindustan Zinc (HZL) will double its lead, zinc and silver production capacity within five years. The company’s board has approved a Rs120bn ($1.39bn) investment for a new 250,000 t/yr integrated smelter in Debari, Rajasthan. Alongside, mined metal capacity will expand by 330,000 t, with the project targeted for completion in 36 months.

This expansion will raise HZL’s refined zinc and lead smelting capacity to nearly 2mn t/yr and boost silver production to 1,500 t/yr. Current annual production stands at 1.1mn t.

Anticipating India’s Rising Demand for Zinc

India’s zinc consumption is projected to rise sharply over the next decade. The International Zinc Association highlights that heavy infrastructure spending and steel sector growth will drive demand. HZL’s expansion aligns with this forecast, ensuring it can supply both domestic and global markets.

As the world’s largest integrated zinc producer and among the top five silver producers globally, HZL already dominates India’s primary zinc market with a 77% share. The planned increase in output strengthens its strategic position across international supply chains.

Strengthening Global Reach and Market Share

HZL supplies zinc, lead, and silver to more than 40 countries worldwide. Its production increase will reinforce India’s role as a key player in global metals markets. By expanding capacity, HZL positions itself to meet both export commitments and domestic industrial growth, particularly in construction, energy, and automotive sectors.

The expansion also reflects a broader trend of miners and smelters aligning investments with future metal-intensive infrastructure and green energy projects, where zinc plays a critical role in galvanization and corrosion resistance.

The Metalnomist Commentary

HZL’s plan to double lead and zinc capacity is a strategic response to India’s infrastructure boom and global supply needs. By combining capacity growth with its existing market dominance, HZL strengthens its position as a global leader in base metals. This expansion also signals confidence in long-term demand despite current price volatility in the zinc market.