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Hindustan Zinc to Set Up India’s First Zinc Tailings Recycling Unit

2026-01-27

Hindustan Zinc, a Vedanta Group company and the world’s largest integrated zinc producer, has awarded contracts to CIMIC Group companies Sedgman and Leighton Asia for the development of India’s first zinc tailings recycling facility at its Rampura Agucha Mines in Rajasthan. The project marks a significant step towards adopting circular economy practices in the country’s mining sector.

Tailings are finely ground residues left after mineral extraction and are traditionally treated as waste. However, they often contain residual quantities of valuable metals that were not recoverable using earlier technologies. The proposed facility at Rampura Agucha will deploy advanced processing techniques to recover metals such as zinc and silver from previously processed tailings, converting legacy waste into a valuable resource.

The project aligns with India’s focus on resource efficiency, sustainability and strengthening domestic critical minerals supply chains. It forms a key part of Hindustan Zinc’s strategy to build a future-ready, multi-metal portfolio while reducing environmental footprint, improving land utilisation and enhancing long-term resource security.

Commenting on the development, 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.”

The initiative follows the company’s board approval in August for an investment of up to ₹3,823 crore to develop a 10 million tonnes per annum zinc tailings recycling facility at Rampura Agucha, with completion targeted within 28 months. Sedgman will handle detailed engineering and offshore equipment procurement, while Leighton Asia will manage onshore procurement and construction.

Juan Santamaría, CEO, ACS Group and HOCHTIEF and Executive Chairman, CIMIC Group, said the project underscores CIMIC Group’s commitment to critical minerals development supporting the global energy transition. Headquartered in Udaipur, Hindustan Zinc operates zinc, lead and silver mines and smelters across Rajasthan and Uttarakhand and is pursuing expansion plans aligned with India’s growing zinc demand.

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