Hindustan Zinc has also secured critical mineral blocks in rare earth elements, tungsten and potash
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Hindustan Zinc expects the capex plans undertaken by the company to double metal capacity to 2 million tonne per annum as well as double annual revenue.Priya Agarwal Hebbar, Chairperson, Hindustan Zinc said the world is going through a generational inflection point, one where minerals and metals have moved to the centre of global geopolitics and geoeconomics, much as oil once did.“Mineral security is now national security. India is actively pursuing self-sufficiency in critical minerals, and Hindustan Zinc is ready to help lead that journey — expanding well beyond our zinc-silver legacy into a broader, strategically relevant multi-metal portfolio,” she said in the company’s Annual Report FY26.The Board has approved the company’s most ambitious capex programme, aimed at doubling the refined metal capacity to 2 mtpa, which will almost double the annual revenue and EBITDA, she said.Hindustan Zinc has always tried to stay ahead of the curve on growth opportunities and at the bottom of the curve on costs. This is the best way to future-proof the company and be ready to perform at its best irrespective of external circumstances, she added.The report has highlighted the company’s ambition to increase metal reserves from 13 million tonnes to 50 mt while supporting a mine life of over 25 years. Hindustan Zinc has also secured critical mineral blocks in rare earth elements, tungsten and potash, reinforcing its ambition of building a diversified, future-ready metals and mining business while contributing to India’s resource security objectives, said the report.The company’s HZL 2.0 strategy envisages an overall growth capex programme of ₹40,000–₹50,000 crore over the next five years. The programme is aimed at nearly doubling refined metal capacity while expanding into critical minerals and future-facing sectors aligned with India’s industrial, infrastructure and energy transition priorities.Hindustan Zinc delivered a return on capital employed of about 67 per cent in FY26, the highest in 18 years, while continuing to maintain one of the lowest cost positions globally. The company generated free cash flow from operations of ₹13,337 crore during the year.Amid the global economic uncertainty, commodity market volatility and evolving trade dynamics, Zinc production cost (excluding royalty) declined 9 per cent year-on-year to a five-year low of $959 per tonne.The company also increased the share of domestic coal in its fuel mix and expanded renewable energy sourcing, helping strengthen resilience against commodity and energy price volatility, it said.Published on June 5, 2026
