Business EconomyPosted at: Jan 24 2026 12:25AM


Hindustan Zinc to set up zinc tailing facility in Rajasthan

Chennai, Jan 23 (UNI) World largest zinc producer and part of the Vedanta group, Hindustan Zinc Ltd, today said it has awarded contracts to CIMIC Group companies Sedgman and Leighton Asia for the development of India’s first zinc tailings recycling facility.
The recycling facility will come up at its flagship Rampura Agucha Mines (RAM) in Rajasthan, Hindustan Zinc said.
Tailings are finely ground remnants left after mineral extraction.
While traditionally classified as waste, tailings often contain residual quantities of valuable metals that were not recoverable through earlier processing technologies.
Earlier in August, the Board of Hindustan Zinc approved an investment of up to Rs.3,823 crore for the development of a 10 million tonnes per annum (Mtpa) zinc tailings recycling facility at Rampura Agucha, targeted for completion within 28 months from the zero date.
Following this approval, Hindustan Zinc has now awarded contracts valued CIMIC Group companies for engineering, procurement and construction activities.
The one-of-its-kind facility at Rampura Agucha will deploy advanced processing techniques to recover metals such as zinc and silver from previously processed tailings, transforming legacy waste into valuable resources and reinforcing a circular approach to mining.
The project is a strategic national milestone, aligned with India’s focus on resource efficiency, circular economy practices, and strengthening domestic critical minerals supply.
The initiative forms a key pillar of Hindustan Zinc’s broader strategy to build a future-ready, multi-metal portfolio while strengthening India’s critical minerals ecosystem.
By unlocking value from legacy tailings, the facility will reduce environmental footprint, improve land utilisation, and enhance long-term resource security for the country.
Arun Misra, CEO – Hindustan Zinc Limited, said: “India’s next phase of industrial growth will be defined not just by how much we mine, but by how intelligently we use what we already have. This project represents a fundamental shift in mining, from extraction to optimisation, and from linear consumption to circular value creation.”
“By establishing India’s first zinc tailings recycling facility at global scale, Hindustan Zinc is creating a blueprint for how legacy resources can be re-engineered into future supply, strengthening the nation’s critical minerals security. Our collaboration with Sedgman’s global minerals processing expertise and Leighton Asia’s on-ground infrastructure execution brings together the best of technology and delivery to set new benchmarks for responsible mining,” Misra said.
This development comes as part of the company’s plan to double its production capacity.
Under the contracts, Sedgman, a global leader in minerals processing, will deliver detailed engineering and offshore equipment procurement, while Leighton Asia, a long-standing infrastructure delivery partner with a strong presence in India, will manage onshore procurement and construction.
The project brings together advanced processing technologies, global expertise and local execution capabilities to support India’s clean energy, infrastructure and advanced manufacturing ambitions.
Juan Santamaría, ACS Group and HOCHTIEF Chief Executive Officer and CIMIC Group Executive Chairman, said: “This project highlights Sedgman’s leadership in minerals processing and Leighton Asia’s proven capability in infrastructure delivery. It reflects CIMIC Group’s strategic commitment to supporting the global energy transition through critical minerals development. Modern tailings reprocessing unlocks new opportunities to recover essential minerals that power clean energy technologies and digital infrastructure.”
Grant Fraser, Managing Director, Sedgman, said: “By leveraging our extensive track record in tailings reprocessing, we are pleased to support Hindustan Zinc in unlocking value from legacy tailings through a circular economy approach. Our end-to-end technical and delivery expertise enables more sustainable minerals extraction while supporting the clean energy transition.”
Brad Davey, Managing Director, Leighton Asia, said: “By combining international experience with deep local knowledge, we are proud to partner with Hindustan Zinc on a project that strengthens India’s mining infrastructure, supports regional growth, and creates meaningful opportunities for local communities through employment and procurement.”
Headquartered in Udaipur, Hindustan Zinc operates zinc, lead and silver underground mines, smelters (metal production plants) in the state of Rajasthan and Uttarakhand.
The company Board had earlier approved the first phase of investments aimed at doubling the company’s production capacity.
These plans include expanding refined metal capacity by 250 kilotonnes per annum (KTPA) and upgrading mines and milling infrastructure across multiple locations, with an investment of nearly Rs.12,000 crores.
The expansions are strategically aligned with India’s projected doubling of zinc demand over the next five to ten years, driven by major investments in infrastructure and the steel sector.
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