Q&A with CEO and WTD

Q

FY2025 has been a record year for the Company. Could you highlight some of the key achievements during the year?

A

Hindustan Zinc delivered a record-breaking performance in FY2025. For the first time since the transition to underground mining, we surpassed 13.1 Mnt metal reserves (net of 1.2 Mnt production), a 3x growth compared to FY2020. This was achieved through advanced exploration programmes and strategic resource to reserve conversion to sustain a 10-year reserve mine life. Our total metal resources & reserves now stand at 29.6 Mnt (453.2 Mnt in ore terms) with 25+ years of mine life. We recorded the highest-ever mined metal production of 1,095 kt, up 1% over the previous year, and refined metal production of 1,052 kt, up 2%. Silver production stood at 687 MT. The zinc business witnessed significant success, with production reaching 827 kt, reinforcing our position as the world’s largest integrated zinc producer. We recorded the highest-ever domestic zinc sales of 603 kt, securing c.77% market share. This reflects the strength of our customer relationships and market leadership. During the year, we have also launched Asia’s first low carbon zinc, EcoZen, boasting a carbon footprint which is 75% lower than the global average. The share of value-added products in our portfolio increased to c.22%. This included 10 kt of production from the zinc alloy plant, which reinforces our commitment to differentiated solutions and driving greater value across the supply chain.

A

CY2024 was a volatile year for the base metals, which started the year as a weak-performing asset class. However, in H2 CY2024, prices rebounded as demand resurged, coupled with shortfall in supplies leading to overall deficit in the market. In India, primary zinc consumption increased to 780 kt in line with sustained demand for steel galvanisation. Lead prices rose marginally amidst moderating global demand. In India, its demand was healthy, supported by automotive, battery, and infrastructure expansion. As for the precious metals, gold and silver reached record highs, as investors sought safer havens amidst economic uncertainties. Silver prices rallied, driven by their dual role as an industrial and precious metal. Overall, the year was favourable with zinc and silver prices increasing by 16% and 29%, respectively. At Hindustan Zinc, we remained vigilant on the market dynamics, proactively monitoring and assessing their impact on our business. We also do strategic hedging depending upon the prevailing market volatility and pricing scenario.

A

Hindustan Zinc is in the first decile of the global zinc mines cost curve. In FY2025, we further reduced the annual zinc cost of production (COP) by 6% from US$ 1,117 per MT to US$ 1,052 per MT, the lowest in four years. Several factors contributed to this:

A

The large scale at which infrastructure is being created in India and with the global transition to clean energy, the demand for zinc and silver continues to be on an uptrend. Considering this, we are proactively investing in capacity expansion to reinforce our leadership and stay ahead of the curve. Even as we scale, we continue to prioritise capital efficiency, prudent resource allocation, and agile execution to ensure minimal capex. In FY2025, we committed a total capex of c.₹ 1,501 crore in various programmes, including 160 ktpa Roaster project and Fertiliser plant at Chanderiya which is set to be commissioned by Q1 FY2027. This calibrated capex will ensure sustained strong performance with gains in mined and refined metal production. In addition to this, we are working towards expanding our production capacity to 2.0 Mnt in phased manner in next 3-5 years. As part of the first phase of 2x growth, we are setting up a new integrated smelter in Debari to further increase our capacity by 250 ktpa, targeted to be completed in 36 months from its zero date. Our team is working with the consultants and is at an advanced stage of completing the plan till 2 Mtpa capacity expansion, post which we will approach the Board for the necessary approvals.

A

Globally, energy transition is one of the biggest focus areas, and critical metals are at the core of this transition. It is estimated that US$ 1.7 trillion of funding in the global mining sector and 3 billion tonnes of metal by 2040 would be required for the energy transition to happen. The need of the hour is critical metals like zinc and silver among others. Zinc plays a vital role in everyday lives, including steel galvanisation, supporting solar and wind infrastructures, and enabling electric vehicles manufacturing. Beyond this, it is now being used in technologies of the future like zinc-air batteries and 3D-printed automotive parts. Silver, apart from its precious metal status, has emerged as a strategic resource powering a low-carbon, high-tech world. It is increasingly being used for advanced semiconductors, electronics, 5G networks and breakthroughs in solar technology.

A

With less than 15% of its natural resources’ reserves tapped, India has a massive opportunity in this energy transition and stands at a turning point. The Indian government is already taking steps in this direction, introducing the Critical Mineral Mission, alongside releasing a list of critical minerals and auctioning blocks of critical minerals. At Hindustan Zinc, we see this as an opportunity and a responsibility. As the world’s largest integrated zinc producer and leading silver producer, we are fully aligned with the world’s urgency and India’s path to critical mineral self-reliance. We are committed to playing a pivotal role in facilitating transition-critical minerals, energy, and technology. To address this rising demand, we are expanding our mining and smelting capacities. In addition to this, we are exploring newer opportunities in zinc-based battery technologies that are a safe, cost-efficient and sustainable alternative to lithium batteries. This would place Hindustan Zinc at the forefront of the next wave of innovation in energy storage, while also strengthening India’s self-reliance in battery solutions. We are poised for leadership in India’s strategic mineral ecosystem through expanding our portfolio in critical minerals. In the previous year, we won a Tungsten block in Andhra Pradesh. In May 2025, we won two more critical mineral blocks – Potash in Rajasthan and Rare Earth Elements in Uttar Pradesh.

A

India is entering a pivotal phase in its economic and environmental journey to harness its massive mineral potential. While this happens, the focus must remain clear: growth cannot come at the expense of the environment or society. That is where Hindustan Zinc is leading the way. With our advanced technologies, innovation, and decades of expertise, we can ensure that mining is minimally invasive, resource-efficient, and environmentally responsible. Our practices are globally recognised. We have been ranked 1^st as the world’s most sustainable metals & mining company for the second consecutive year by the S&P Global Corporate Sustainability Assessment 2024. Furthermore, we are the first Company in the metals and mining sector to publish a Climate Action Report, aligned with the International Financial Reporting Standards (IFRS) S2 – Climate-related Disclosures framework. These reflect the scale at which we are creating impact. Our sustainability efforts encompass ambitious goals to be achieved by FY2030, and through pioneering efforts, we are meaningfully progressing ahead. Notably, we have achieved 0.67 million tonnes of CO₂ equivalent reduction, as against a target of 0.5 million tonnes for FY2025. By embracing renewable energy and deploying battery-operated vehicles, including a fully battery-powered logistics value chain, we are well on track to achieve our net-zero target by 2050 or sooner. This year, we envisaged to take our renewable usage to around 30% and eventually will go up to 70% by FY2028. To lower Scope 3 emissions, we completed deployment of the entire pledged fleet of 180 LNG trucks, and we currently have 3 UG BEVs operating in our mines. We have commissioned a water treatment plant at Rampura Agucha Mines and a dry tailing and paste-fill plant at Rajpura Dariba Complex, significantly enhancing our water saving capacity. This year, Hindustan Zinc turned to be 3.32 times water positive. At Chanderiya, our one-of-its-kind Fumer technology is ramping up well to effectively recover lead and silver cake from jarosite. This will help improve gainful waste utilisation, which currently stands twice as compared to FY2020. These efforts are the kind of leadership the sector and the planet need, and we will continue to make incremental investments in these areas.

A

Diversification and strengthening value-added portfolio are central to our growth strategy. The Indian automobiles sector has an unmet demand for specific alloys such as die-casting alloys etc., which serve a specific purpose such as providing light, strong and corrosion-free structure. With an objective to diversify ourselves to cater to the underserved markets of alloys in India, our subsidiary Hindustan Zinc Alloy Private Limited is at the forefront of these efforts. This 30 ktpa zinc alloy plant has significantly expanded our value-added products (VAP) portfolio. Last year, we produced 10 ktpa of the alloys which took our overall VAP portfolio to c.22%. It has also recorded an EBITDA of around ₹ 93 crore which should get doubled as it runs at full capacity. We are also entering the fertiliser segment, with a DAP/NPK plant, which is expected to be operationalised in FY2027. These initiatives will help us to have better integration, diversify our revenue streams and enhance margins.

A

Going into FY2026, the global macroeconomic environment is expected to remain uncertain, given the recent developments around tariff wars, trade dynamics and shifting geopolitics. As far as India is concerned, the domestic market is buoyant. The government’s sustained focus on infrastructure development is likely to propel steel demand to 300 Mnt by 2030, which in turn will drive zinc’s consumption for corrosion protection. Furthermore, India’s economic fundamentals remain strong, with GDP projected to grow by 6.5% and manufacturing PMI increasing to 58.5 in April 2025, reflecting healthy industrial activity. These factors will continue to define the commodity landscape. We expect zinc prices and market sentiment for silver to remain resilient, supported by a persistent supply deficit and the absence of any significant projects. Additionally, given the application of these metals in clean energy storage and sustainable technologies, their demand is estimated to remain robust to support the global energy transition.

A

Our strong foothold in critical metals, combined with domestic market focus, positions us well for long-term growth and gives us resilience. Aligned with the opportunity, we have established a well-structured capex roadmap. This gives confidence in sustaining a strong performance with mine metal output at an estimated 1.125 Mnt and refined metal at 1.1 Mnt, with refined silver in the range of 700-710 MT. Zinc COP is expected to be in the range of US$ 1,025 to US$ 1,050 per MT. At the same time, we aim to steadily evolve into a multi-metal, future-enabling enterprise, aligned with India’s critical mineral security vision. Through our wholly-owned subsidiary, Hindmetal Exploration Services, we are actively pursuing the exploration of high-potential, critical mineral blocks across India. These include copper, lithium, nickel, cobalt, potash, and gold, among others, which are critical for EVs, semiconductors, and clean technologies. We have already secured blocks for Potash in Rajasthan, Tungsten in Andhra Pradesh, and Rare Earth Elements Elements in Uttar Pradesh. These efforts equip us to navigate change and capture future opportunities, positioning us to deliver sustained returns and drive shareholder value in the years to come. Sincerely, Arun Misra Chief Executive Officer & Whole-time Director