Hindustan Zinc, one of India’s leading mining companies, is in talks with the Indian government about splitting the company into two separate units. However, the government is against this idea, having rejected a similar proposal earlier this year because the largest minority shareholder is unsure it would increase shareholder value.
CEO Arun Misra stated that the company believes a demerger could create value and will keep pursuing this option, regardless of government disinvestment plans. Last year, Hindustan Zinc expressed intentions to separate its zinc, lead, silver, and recycling businesses to unlock potential value.
Additionally, the company is looking to enter the domestic critical minerals market and plans to bid for blocks of copper, lithium, gold, platinum, and potash. Misra mentioned they are also in discussions with global mining contractors to start mine development, aiming to double their output to 2 million tons per year. He noted that they expect to invest around $2 to $2.5 billion for this expansion.
In a recent financial report, Hindustan Zinc announced a significant second-quarter profit increase of about 35% year-on-year, reaching ₹23.27 billion (approximately $277 million), which surpassed analysts’ expectations. Their revenue from operations also grew by 21% to ₹80.04 billion, exceeding predictions.
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