Hindustan Zinc Ltd. is considering doubling its yearly output to 2 million tonnes. The company expects a final report from consultants next month, which will then be presented to its board of directors, according to CEO Arun Misra.
Expansion Plans
Currently, Hindustan Zinc produces just over 1 million tonnes of metal each year. The company plans to increase production using its existing mines and smelting facilities in Chanderiya, Rajasthan, rather than acquiring new mines or land.
Two Australian companies are helping Hindustan Zinc develop a plan to double its mining capacity. Additionally, a consultant is working on increasing the zinc smelting capacity.
Industry Insights
Kunal Kothari, a research analyst at Centrum Broking, mentioned that with zinc demand expected to grow at 3-4% annually, this expansion will help Hindustan Zinc meet both domestic and export needs. The expansion will be more cost-effective since it will use existing facilities.
Low-Carbon Zinc Product
On Wednesday, Hindustan Zinc launched EcoZen, a new low-emission zinc product. This zinc will produce only a quarter of the emissions compared to global standards due to the use of renewable power from Serentica Renewables, a fellow group company.
EcoZen will be produced on a separate line powered entirely by renewable energy. While the pricing for EcoZen was not disclosed, Misra expects it to account for 8-10% of Hindustan Zinc’s production this year and up to 30% next year.
Demand for Low-Emission Products
The new product is aimed at steelmakers who need low-emission materials to meet stricter global standards. Europe’s Carbon Border Adjustment Mechanism (CBAM) requires steel exporters to declare the carbon footprint of their products. Starting in 2026, high carbon emitters will have to pay extra duties to sell steel in Europe.
“This helps steelmakers show lower net CO2 emissions compared to using regular zinc,” Misra said.
Market Performance
Hindustan Zinc’s stock rose by 1.66% to ₹632.65 on the BSE on Wednesday, even as the benchmark Sensex fell by 0.35%. The company’s share prices have doubled since the beginning of the year, partly due to rising silver prices. Hindustan Zinc is also India’s largest producer of silver and lead, recovering silver as a by-product during lead production.
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