Mining major Hindustan Zinc plans to increase its silver production to 1500-2000 tonne from 700 tonne amid the ongoing rally in the precious metal.
The company, which is India’s largest silver producer, aims to extract more silver through use of innovative technology. Hindustan Zinc plans to invest about $2 billion to increase overall metal production capacities to 2 million tonne, sources said.
In 2024, the company’s silver refinery in Uttarakhand received clearances to expand the production capacity of refined silver from 800 tonne per annum to 1,120 tpa in two phases.
Globally, silver prices have surged due to a combination of factors, including rising demand from clean energy technologies such as batteries and solar panels. They have jumped to their highest level in a decade, rallying over 20 per cent in the year so far.
Arun Misra, CEO, Hindustan Zinc recently said the company is currently evaluating on ramping up silver output.
“We will be in a position to confirm whether we are making a strategic move toward increasing silver output, including focusing on areas with higher silver content next month. There is also an operational approach that allows the company to reduce zinc production in favour of more silver, he said.
“I believe by July, once the quarterly results are released, we will be ready to make a formal announcement,” he added.
Hindustan Zinc’s silver production has grown 20 times since the disinvestment by the central government in 2002.
According to market analysts from leading brokerage firms, the disinvestment of the government’s stake in Hindustan Zinc will be key to unlocking India’s silver growth as it will allow the company to perform to its full potential.
Hindustan Zinc has established India’s first fumer facility that enables the recovery of valuable metals, including silver, from previously discarded waste streams.
The company is also implementing innovative technology for the recovery of lead and silver from smelting waste.
This technology will help recover an additional 27 tpa of silver and is scheduled for commissioning in the fourth quarter of the next financial year.