Hindustan Zinc targets 3 new metals by 2030 in India

Strategy shift flagged at the 60th AGM

Hindustan Zinc Ltd has set out a clear plan to broaden its business beyond zinc, with chief executive Arun Misra telling shareholders the company wants to add at least three new metals over the next five years. The comments were made at the company’s 60th annual general meeting on Monday, positioning the Vedanta Group firm as a potential multi-commodity player in India’s emerging critical minerals ecosystem. Hindustan Zinc is currently India’s largest producer of zinc and silver, with an existing portfolio that includes zinc, lead, silver and cadmium. The company said its long-term strategy is to diversify into minerals such as rare earths, potash and tungsten. Misra also indicated that copper or gold could be considered if suitable mineral blocks become available.

What the company says it wants to add

Misra’s message to shareholders focused on expanding the product basket, linking the plan to India’s wider industrial and energy transition needs. In the company’s stated strategic vision, the next five years should see about three new metals added to the portfolio. Separate reporting in the provided material also frames the push as adding “three-four” metals by 2030, with examples including neodymium, tungsten and potash. Hindustan Zinc has also communicated that it is evaluating prospects across a broader set of minerals, including antimony, graphite and germanium. And it has previously expressed interest in copper and gold, and in other minerals such as lithium.

Auctions under the Critical Mineral Mission

The diversification drive is tied to Hindustan Zinc’s participation in mineral block auctions conducted under the Centre’s Critical Mineral Mission. The CEO described the company’s aggressive bidding as part of a deliberate effort to build a foothold in minerals that are increasingly viewed as strategic inputs. These minerals are linked to sectors such as electric mobility, renewable energy, defence, and advanced manufacturing. The company’s stated objective is to become a supplier of critical minerals to such industries, using its mining and processing experience to move into difficult-to-mine resources.

Mineral blocks secured so far and where they are

Hindustan Zinc said it has already secured mineral blocks for tungsten, potash and rare-earth elements, and its annual report lists specific locations. The company has secured a tungsten block in Balepalyam in Andhra Pradesh. It has also secured a rare-earth elements (REE) block in Nawatola, Laband in Uttar Pradesh, and a potash block in Jhandawali, Satipura in Rajasthan. Separate text in the provided material also mentions that Hindustan Zinc has secured exploration and mining blocks for tungsten, potash, rare earth elements, and halite.

Exploration pipeline and near-term milestones

The company is working with a pipeline of 10 mineral blocks that are under exploration, according to the provided material. Misra said Hindustan Zinc is managing ten mineral blocks, with an internal goal of adding three more metals over the next five years. One rare earth mineral block in Uttar Pradesh was described as containing monazite, with the company waiting for regulatory approvals before beginning geological exploration. Misra said the next steps involve obtaining the licence and finalising an agreement, followed by geological exploration. He also said the company is aiming to begin exploration around July or August and initiate exploration across all the blocks.

Corporate setup and external expertise

Hindustan Zinc has created a subsidiary, Hindmetal Exploration Services, for exploration of these minerals. The company has also said it invited global expertise through international tenders for AI-led and drone-led exploration, naming Australia, South Africa, Chile and China as part of that outreach. Another report in the provided material lists a broader set of countries and says the company is seeking assistance from firms in Australia, South Africa, Peru, Chile, as well as China for exploration. These steps were presented as capability-building measures to evaluate mineral blocks and accelerate exploration work.

“Hindustan Zinc 2.0” and board-approved expansion plans

Alongside the critical minerals strategy, Hindustan Zinc has highlighted capacity expansion as part of its broader plan. The company’s board has approved plans to expand refined metal capacity by 250 KTPA, along with mine and mill expansions across locations, with an investment of nearly ₹12,000 crore. A new 250 KTPA smelter is planned at Debari in Udaipur district, Rajasthan, with completion targeted in 36 months; the provided material also notes current capacity at 1.1 million tonnes.

Another Reuters-linked update dated June 17 in the provided text said the company approved a project valued at 120 billion rupees ($1.39 billion) to set up a metals complex with 250 KT annual capacity in Rajasthan. In that report, Misra said the expansion was the first phase of a larger strategy and that additional components would be unveiled within a month or two. The same material said Hindustan Zinc is targeting production of nearly 2 million tonnes per year, up from 1.02 MT, and that the expansion would be financed through internal funds and loans.

Silver capacity and capital planning details

Silver was described as Hindustan Zinc’s second most significant business sector in the provided material. One report said this phase involves an increase of 30 KT in silver refining capacity, while also stating the company plans to raise silver refining capacity from 800 tonnes per annum to 1,500 tonnes per annum. The company has also disclosed a broader five-year aim to scale total metal production capacity beyond 2,000 KTPA and silver output to 1,500 tonnes annually.

On capital allocation, one report in the provided material said Hindustan Zinc will allocate ₹12,000 crore over the next three years to support an initiative to double production capacity to 2 million tonnes of mined metal. The same report broke this into three phases: ₹3,000 crore in FY26, ₹5,000 crore in FY27, and ₹4,000 crore in FY28. A Reuters-linked note in the provided text said the anticipated capital investment for doubling capacity over the next five years is expected to be between 320 billion and 350 billion rupees, implemented in stages.

Market context: demand, supply and what the company highlighted

The provided material links expansion plans to expectations of rising zinc demand in India. One report stated India’s zinc consumption is expected to double in the next 5 to 10 years, driven by infrastructure investment, particularly in steel manufacturing. The same material said India’s current zinc demand is about 0.85 million tonnes and Hindustan Zinc supplies around 0.7 to 0.75 million tonnes. Another figure stated demand could rise to about 1.2 million tonnes in three years.

Separately, the company’s leadership framed the critical minerals push as aligned with demand growth across clean energy, digital infrastructure and national security. Chairperson Priya Agarwal Hebbar told shareholders that Hindustan Zinc is moving beyond its zinc and silver legacy to become a multi-metal enterprise, and that the company is building capabilities and global partnerships.

Why this matters for investors and the industry

The central significance is that Hindustan Zinc is seeking to move from being primarily a zinc and silver producer into a company with exposure to minerals that are directly linked to India’s energy transition and strategic manufacturing needs. The company’s secured blocks in tungsten, potash and rare earths indicate that the plan is tied to identifiable assets rather than only a long-term intent. At the same time, the timeline in the provided material suggests exploration and approvals will be key gating items, particularly for rare earths where the company said it is waiting for licences and agreements before starting geological work. The parallel capacity expansion plans show Hindustan Zinc is pursuing two tracks at once: scaling core metals and developing new mineral verticals.

Conclusion

Hindustan Zinc has outlined a five-year goal to add at least three new metals to its portfolio, while building a pipeline across 10 mineral blocks and pushing ahead with capacity additions including a 250 KTPA smelter at Debari. In the near term, the company has said it expects exploration activity to begin around July or August and is awaiting regulatory steps for at least one rare earth block. Investors are likely to track progress on licences, exploration outcomes, and the staged capex plan as the company executes both expansion and diversification under its “Hindustan Zinc 2.0” strategy.