Hindustan Zinc, owned by Vedanta, has stopped his delmerging plans and is focusing on consolidating operations in India. The company is discussing a phase I growth capex of $ 1–1.1 billion (₹ 8.5 billion rupees), with the approval of the expected board within a month.
Combined with similar investments in the future, Hindustan Zinc aims to double its production to almost 2 million tons (MT) in the coming years, said CEO Arun Misra. Business line.
According to Misra, CAPEX is expected to be “preferably” base through a combination of debt and equity. The company generated free cash flows for a sum of $ 1.1 billion for fiscal year 2015, with the current cost of the debt “less than 8 percent”.
For fiscal year 2015, the company had a net debt position of ₹ 1.2 billion rupees. The net debt was reduced by the level of 5,700 million rupees, such as September 30, 2024.
The mined metal production for FY25 was around 1.1 TM. The income stood at ₹ 34,083 million rupees, 18 percent year -on -year, while Ebita stood at ₹ 17,465 million rupees, 28 percent more. The 51 percent Ebitda margin reported an improvement of 400 basic points. Profit after taxes increased by more than 33 percent, to ₹ 10,353 million rupees.
“The growth capex for double production is under discussion and almost $ 1 billion of investments are being considered. There will be a phase increase in the capabilities between the mines and we are working on it. In next month we are more or less go to the approvals of the Board.”
The CAPEX guide for fiscal year26 is around $ 225-255 million (₹ 2,000- ₹ 2.3 billion rupees), mainly for the reduction of elimination reduction, the replacement of equipment in the mines, etc. Growth capex approved by the Board would be a separate consultant.
Expansion plans
The company has already drawn the overcoming plans in two of its eight mines: Rampur Agucha and Assindewar Kurd, while the work is in 6 more (Rajpura Dariba, Zawar, Kayad and others). Consultants or mines development operators have been appointed for it.
“Some loose ends have to be tied and after that we go to the Board,” the company’s main brass had told an investor call.
When asked about the almerging plans, including the acquisition of mines abroad, Misra said: “The plans were taken into account the situation at that time.” However, with Father Vedanta he seeks to expand operations in the recently reinforced zambian copper mines and his own Demerger Plange group, “Hindustan Zinc opted for a change in the strategy.”
The company would seek to consolidate the presence in India, at present, including the incursion in critical minerals and increase the production of precious metals (silver).
Critical minerals
As part of this strategy focused on India, Hindustan Zinc recently obtained leases for a tungsten block (critical mineral) in Andhra Pradesh and a gold mining block in Rajasthan. “Mining will take two or three years to begin through these new blocks. We are completing the documentation processes, after which exploratory activities will begin,” said Misra.
“Approximately in the coming years, we go from a base metal miner to a precious mineral production and other criticisms,” Misra added.
Posted on April 25, 2025
