Hindustan Zinc plans a 10-million-tonne-a-year plant to recover zinc and critical minerals, including germanium, from old mining waste. CEO Amarendu Prakash told BusinessLine it should start in about two years, as the company also targets almost doubling its mining capacity.
At a glance
- The company has finished conceptual design and engineering and is in the implementation phase.
- It aims to lift mining capacity from 18 million tonnes to 35 million tonnes over two to five years.
- Hindustan Zinc now expects zinc to cost $825 to $850 a tonne to produce this year, down from earlier guidance.
Background
Tailings are the finely ground rock left over after metal has been extracted from ore. Older tailings often still hold metal that was too costly to recover with past technology. Hindustan Zinc, part of the Vedanta group, is India's largest zinc producer and a major silver producer.
What the company plans
Hindustan Zinc plans a tailings recycling plant that can handle 10 million tonnes a year, chief executive Amarendu Prakash told BusinessLine. It will recover zinc and critical minerals, including germanium, from mining waste. The project has two parts: moving and processing the tailings, including by hydro-mining, and then extracting the metals.
"Yesterday's waste is becoming today's ore," Prakash said. He added that higher metal prices and better extraction technology were making discarded material worth processing. He described it as a new technology with limited use around the world.
Cost still being worked out
Prakash said the final investment had not been settled, as the company is still comparing processing technologies. In August 2025 its board approved up to ₹3,823 crore for a 10-million-tonne-a-year tailings reprocessing facility at Rampura Agucha in Rajasthan, with units of Australia's CIMIC Group as contractors.
Bigger mines and more silver
Hindustan Zinc plans to lift mining capacity from 18 million tonnes to 35 million tonnes over the next two to five years. Prakash said ageing mines and falling ore grades could hold back global zinc supply even as demand grows. He cited forecasts of 13.87 million tonnes of refined zinc demand in 2026 against 13.69 million tonnes of supply.
Chief financial officer Amit Gupta said zinc should cost $825 to $850 a tonne to produce this year, against the earlier guidance of $975 to $1,000. For silver, the company is still targeting 680 tonnes this year after producing 321 tonnes in the first half.
What it means
If the plant works at scale, it would turn a waste problem into a new source of zinc and germanium in India, without opening a new mine. Germanium is used in fibre optics, infrared optics and chips.
Our read
Outlook: neutral. The plant is about two years away, so it does not change zinc supply now.
What to watch
- Which processing technology Hindustan Zinc picks, and the final investment.
- Progress on raising mining capacity to 35 million tonnes.
For information only, not investment advice.
Zinc price in India
metalscost.com India reference price as of 2026-11-03.
Detailed analysis
Timeline
- 2025-08-18: Hindustan Zinc's board approves up to ₹3,823 crore for a 10 Mtpa tailings facility at Rampura Agucha.
- 2026-10-20: CEO Amarendu Prakash says the tailings plant should start in about two years.
Demand Drivers
The CEO cites a 2026 refined zinc deficit of about 180,000 tonnes.
Supply Drivers
Recycling tailings and doubling mining capacity would add zinc supply from India over several years.
What could lift prices
- Ageing mines and lower grades could limit global zinc supply.
- Forecasts point to a small refined zinc deficit in 2026.
What could weigh on prices
- Hindustan Zinc's capacity growth would add supply over time.
- Recovered metal from tailings adds a new source of zinc.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | A new domestic source of zinc and germanium could come from mining waste. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Mining | Positive | Tailings recycling extends the value of existing mines. |
| Critical Minerals | Positive | Germanium recovery could reduce India's import reliance. |
Who gains, who loses
- Hindustan Zinc: Lower costs and a new source of metal from waste it already holds.
- Higher-cost zinc miners: Hindustan Zinc is cutting costs and planning to nearly double mining capacity.
Other ways this could play out
- If the technology works at scale, other Indian miners could follow.
- If costs prove too high, the project could be scaled back or delayed.
Price risks
- Lower zinc prices would weaken the economics of tailings recovery.
- New technology could take longer than planned to work.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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