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Hindustan Zinc Partners with CIMIC Group to Develop India’s First Zinc Tailings Reprocessing Plant

Hindustan Zinc Ltd. has entered into an agreement with CIMIC Group companies Sedgman and Leighton Asia to execute engineering and construction works for India’s first zinc tailings recycling facility at the Rampura Agucha Mines in Rajasthan.

The upcoming facility will use advanced processing technologies to extract remaining metals such as zinc and silver from tailings—fine waste material generated during mineral processing. By reprocessing legacy tailings, the project aims to transform waste into recoverable resources while promoting circular economy practices within the mining industry.

According to the company, the initiative supports India’s broader goals of improving resource efficiency and strengthening domestic supply chains for critical minerals. It is also expected to reduce environmental impact, optimise land use, and enhance long-term mineral security.

The project forms part of Hindustan Zinc’s wider capacity expansion roadmap. In August last year, the company’s board approved an investment of up to Rs 3,823 crore to establish a zinc tailings recycling facility with a processing capacity of 10 million tonnes per annum at Rampura Agucha. The project is targeted for completion within 28 months from the zero date, and the awarding of EPC contracts marks a key step toward implementation.

Under the contract framework, Sedgman will undertake detailed engineering and offshore equipment procurement, while Leighton Asia will be responsible for onshore procurement and construction activities. The collaboration combines global mineral processing expertise with strong local execution capabilities.

Commenting on the development, Hindustan Zinc CEO Arun Misra said the project represents a transition from traditional mining practices to more efficient utilisation of existing resources, adding that the facility could serve as a model for converting legacy materials into future mineral supply.

CIMIC Group Executive Chairman Juan Santamaría noted that the project reflects the group’s focus on critical minerals development to support the global energy transition, highlighting the potential of modern tailings reprocessing to unlock additional mineral value for clean energy and digital infrastructure.

Headquartered in Udaipur, Hindustan Zinc operates zinc, lead and silver mines and smelters across Rajasthan and Uttarakhand. Earlier this year, the company approved the first phase of investments to double production capacity, including plans to expand refined metal output by 250 kilotonnes per annum and upgrade mining and milling infrastructure, with an estimated investment of nearly Rs 12,000 crore.

These expansion initiatives are aligned with expectations of rising zinc demand in India over the coming decade, driven by infrastructure growth and increased steel consumption. Hindustan Zinc was ranked the world’s most sustainable metals and mining company in the S&P Global Corporate Sustainability Assessment 2025 for the third consecutive year and is India’s first member of the International Council on Mining and Metals.