Hindustan Zinc to Set Up India’s First Zinc Tailings Recycling Facility in Rajasthan

Udaipur, January 23 (Daily Kiran): Hindustan Zinc Limited, a Vedanta Group company and the world’s largest integrated zinc producer, has announced the award of engineering, procurement and construction 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.

Tailings are finely ground residues left after mineral extraction. While traditionally treated as waste, tailings often contain residual quantities of valuable metals that could not be recovered using earlier processing technologies. The new facility at Rampura Agucha will use advanced recycling techniques to recover metals such as zinc and silver from previously processed tailings, converting legacy waste into valuable resources and promoting a circular approach to mining.

The project aligns with India’s focus on resource efficiency, circular economy practices and strengthening domestic supply of critical minerals. By extracting value from old tailings, the facility is expected to reduce environmental impact, optimise land use and enhance long-term resource security for the country.

Arun Misra, CEO of Hindustan Zinc Limited, said the next phase of India’s industrial growth will be defined not only by how much is mined, but by how efficiently existing resources are utilised. He said the project reflects a shift from linear consumption to circular value creation and will serve as a blueprint for transforming legacy resources into future supply. He added that the collaboration combines Sedgman’s global mineral processing expertise with Leighton Asia’s infrastructure execution capabilities to set new benchmarks in responsible mining.

The development forms part of Hindustan Zinc’s plan to double its production capacity. In August, the company’s board approved an investment of up to ₹3,823 crore for a 10 million tonne per annum zinc tailings recycling facility at Rampura Agucha, with a targeted completion timeline of 28 months from zero date. Following this approval, contracts for engineering, procurement and construction activities have now been awarded to CIMIC Group companies.

Under the contracts, Sedgman, a global leader in minerals processing, will handle detailed engineering and offshore equipment procurement, while Leighton Asia, which has a strong presence in India, will manage onshore procurement and construction. The project brings together advanced processing technology, global expertise and local execution to support India’s clean energy, infrastructure and advanced manufacturing ambitions.

Juan Santamaria, Executive Chairman of CIMIC Group and CEO of ACS Group and HOCHTIEF, said the project demonstrates Sedgman’s leadership in minerals processing and Leighton Asia’s proven infrastructure delivery capabilities, supporting the global energy transition through critical minerals development.

Grant Fraser, Managing Director of Sedgman, said the company is pleased to support Hindustan Zinc in extracting value from legacy tailings through a circular economy approach, contributing to more sustainable mineral recovery.

Brad Davey, Managing Director of Leighton Asia, said the partnership combines international experience with strong local knowledge and will support regional development, employment and procurement opportunities for local communities.

Hindustan Zinc, headquartered in Udaipur, operates underground zinc, lead and silver mines and smelters across Rajasthan and Uttarakhand. Earlier this year, the board approved the first phase of investment to double production capacity, including increasing refined metal capacity to 250 kilotonnes per annum and upgrading mining and milling infrastructure, with an estimated investment of around ₹12,000 crore over the next five to ten years.