1Q zinc production cost at US$1,010/MT
Hindustan Zinc’s Board has approved a first phase of US$1.4 billion investment plans to double production capacity with a new 250 KTPA integrated smelting complex alongside similar expansion of mines & mills capacities http://hzlindia.com.
“We have further strengthened our growth pipeline with Board approved Phase-1 plans to double production capacity,” said CEO Arun Misra as he announced Hindustan Zinc Limited’s financial results for the first quarter ended 30 June 2025 on 18 July 2025.
During the quarter, the company secured two critical mineral blocks, Potash in Rajasthan and Rare Earth Elements (REEs) in Uttar Pradesh. In the same period, the company’s renewable energy consumption increased to c. 19%, on track to progressively achieve 70% by FY28 https://www.bseindia.com/.
Along with that, the company clocked record quarterly alloy production from subsidiary Hindustan Zinc Alloys (HZAPL), taking overall share of value-added products to c.24%. The company registered the lowest ever first quarter zinc cost of production (COP)^ at US$1,010/MT, better 9% YoY. The company delivered a profit, beating estimates to US$261 million with an industry leading EBITDA margin of c.50% https://www.nseindia.com/.
“Delivering our highest-ever first quarter mined metal production at the lowest-ever zinc cost of production reflects our relentless focus on operational efficiencies and cost leadership. with the addition of critical minerals blocks and rare earth elements, we are poised to transform into a multi-metal powerhouse, unlocking sustained value for our stakeholders.”
Hindustan Zinc, amongst the top five silver producers globally, has witnessed continued significant contribution from the silver segment to profitability at c.41% https://www.makeinindia.com/home/.
Historically, Hindustan Zinc has maintained investment grade rating ‘AAA’ and recently received ratings reaffirmation at CRISIL AAA/Stable/CRISIL A1+. Fiinews.com
