Hindustan Zinc Awards Contract for India's First Tailings Recycling Facility

Introduction

Hindustan Zinc Limited (HZL), a Vedanta Group company, has awarded significant contracts to CIMIC Group companies Sedgman and Leighton Asia to develop India’s first zinc tailings recycling facility. Announced on January 23, 2026, this pioneering project will be located at HZL's flagship Rampura Agucha Mines in Rajasthan. The facility represents a major step towards implementing circular economy principles in the Indian mining sector by transforming legacy waste into valuable resources.

A New Approach to Mining Waste

Tailings are the finely ground rock and mineral residues left after the extraction of valuable metals. Historically considered waste, these materials often contain residual amounts of metals that were not recoverable with older technologies. The new facility at Rampura Agucha will utilize advanced processing techniques to extract valuable metals, including zinc and silver, from these previously processed tailings. This initiative turns a long-standing environmental liability into a strategic asset, reducing the mine's footprint and improving land use.

Strategic National Importance

This project is a milestone for India, aligning with the nation's strategic focus on resource efficiency, circular economy practices, and securing a domestic supply of critical minerals. It is a core component of Hindustan Zinc's strategy to develop a future-ready, multi-metal portfolio. By extracting value from legacy waste, the facility will not only enhance resource security but also contribute to a more sustainable mining industry in the country.

Leadership Vision

Arun Misra, CEO of Hindustan Zinc, emphasized the project's transformative nature. "India’s next phase of industrial growth will be defined not just by how much we mine, but by how intelligently we use what we already have," he stated. "This project represents a fundamental shift in mining, from extraction to optimisation, and from linear consumption to circular value creation. By establishing India’s first zinc tailings recycling facility at global scale, Hindustan Zinc is creating a blueprint for how legacy resources can be re-engineered into future supply."

Project Investment and Scope

The development is part of HZL's broader plan to double its production capacity. In August 2025, the company's board approved an investment of up to ₹3,823 crore for the 10 million tonnes per annum (Mtpa) facility. The project is targeted for completion within 28 months from its start date. The contracts awarded to CIMIC Group companies cover the full scope of engineering, procurement, and construction (EPC) activities.

Global Expertise Meets Local Execution

Under the agreement, Sedgman, a global leader in minerals processing, will handle detailed engineering and offshore equipment procurement. Leighton Asia, which has a strong operational presence in India, will manage onshore procurement and construction. This collaboration brings together advanced technology, international expertise, and local execution capabilities to support India's ambitions in clean energy, infrastructure, and advanced manufacturing.

Partner Perspectives

Juan Santamaría, CEO of ACS Group and HOCHTIEF and Executive Chairman of CIMIC Group, highlighted the project's strategic fit. "This project highlights Sedgman’s leadership in minerals processing and Leighton Asia’s proven capability in infrastructure delivery. It reflects CIMIC Group’s strategic commitment to supporting the global energy transition through critical minerals development," he said. Grant Fraser, Managing Director of Sedgman, added, "By leveraging our extensive track record in tailings reprocessing, we are pleased to support Hindustan Zinc in unlocking value from legacy tailings through a circular economy approach." Brad Davey, Managing Director of Leighton Asia, noted the project's local impact, stating it will create "meaningful opportunities for local communities through employment and procurement."

Alignment with Broader Expansion Goals

This tailings facility is a key part of HZL's larger expansion plans. The company has already approved investments of nearly ₹12,000 crore to expand its refined metal capacity by 250 kilotonnes per annum (KTPA) and upgrade its mining and milling infrastructure. These expansions are strategically timed to meet India's projected doubling of zinc demand over the next decade, which is being driven by significant investments in the infrastructure and steel sectors.

A Leader in Sustainable Mining

Hindustan Zinc's commitment to sustainability is well-established. The company was ranked the world's most sustainable metals and mining company by the S&P Global Corporate Sustainability Assessment for three consecutive years. It is also India's first member of the prestigious International Council on Mining and Metals (ICMM), underscoring its adherence to global best practices in responsible mining. The tailings recycling project further strengthens its leadership in decarbonization and circular economy initiatives.

Conclusion

The establishment of India's first zinc tailings recycling facility by Hindustan Zinc is a landmark achievement for the country's mining industry. This project not only unlocks economic value from waste but also sets a new standard for environmental stewardship and resource management. By partnering with global experts Sedgman and Leighton Asia, HZL is poised to deliver a world-class facility that will support India's industrial growth and critical minerals security for years to come.