Vedanta Group company Hindustan Zinc Ltd (HZL) plans to invest $500-600 million (around Rs 5,000 crore) during the current financial year, with the bulk of the capital expenditure directed towards projects already under execution, Chief Executive Officer Arun Misra said.
In an interview with PTI, Misra said around 80% of the planned capex for the year will be deployed in ongoing projects, while the remaining 20% will be allocated to new projects that the company expects to announce shortly.
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"About 80% of our capex guidance is for projects that are already under execution, while around 20% will go towards new projects that we plan to announce soon," Misra said.
The company is pursuing an expansion pipeline with a total capacity of about 1 million tonnes. Of this, projects accounting for 250,000 tonnes, or 25% of the planned capacity, have already received approval, backed by an investment of around Rs 12,000 crore covering mining and mineralisation.
According to Misra, orders related to mining have already been placed and construction of the smelter has begun. However, orders for milling and concentrate-related facilities are yet to be finalised.
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The remaining expansion, which will take capacity to 650 KT, will require investment in a similar proportion over the next four to five years.
"That translates to an average annual capex of about Rs 7,000-8,000 crore," Misra said, adding that only 15-20% of this multi-year investment plan will translate into actual cash outflows during the current financial year.
He did not provide a timeline or financial details for the upcoming projects.
A subsidiary of Vedanta Ltd, Hindustan Zinc is India's largest integrated producer of zinc, lead and silver. The company operates across the entire value chain—from mining to metal production—through fully mechanised underground mines and digitally enabled smelting facilities.
Vedanta Ltd holds a 60.71% stake in Hindustan Zinc, while the Government of India owns 27.92% of the company.
