India's Mining Leap: Turning Zinc Waste into Strategic Treasure

UDAIPUR, India – January 23, 2026 – In a move set to redefine the landscape of Indian mining, Hindustan Zinc Limited (HZL) has launched a groundbreaking initiative to construct the nation's first-ever zinc tailings recycling facility. The project, located at the company's flagship Rampura Agucha Mines in Rajasthan, represents a monumental step towards establishing a circular economy within the metals and mining sector. With a significant investment of up to ₹3,823 crore, the facility is designed to reprocess 10 million tonnes of mining waste annually, transforming historical liabilities into a valuable source of critical minerals.

The Vedanta Group company has partnered with two CIMIC Group entities, Sedgman and Leighton Asia, to bring this ambitious vision to life. The collaboration combines global minerals processing expertise with seasoned on-ground infrastructure delivery, aiming to complete the state-of-the-art plant within 28 months from its zero date.

A Paradigm Shift from Extraction to Optimization

For decades, mining has been a linear process: extract, process, and discard. The discarded material, known as tailings, accumulates in vast impoundments, posing long-term environmental management challenges. Globally, an estimated 7 billion tonnes of such waste are generated each year. This project fundamentally challenges that model.

By deploying advanced processing techniques, the new facility will recover valuable metals, including zinc and silver, from tailings that were previously processed with less efficient, older technologies. This waste-to-wealth approach not only creates a new revenue stream but also significantly reduces the mine's environmental footprint by giving a second life to legacy waste.

Arun Misra, CEO of Hindustan Zinc, articulated the project's transformative potential, stating, "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." Misra emphasized that the facility creates a blueprint for re-engineering legacy resources into future supply, a core principle of sustainable development.

This commitment to sustainability is deeply embedded in HZL's corporate identity. The company has been recognized for three consecutive years as the world's most sustainable metals and mining company by the S&P Global CSA and was the first Indian company to become a member of the International Council on Mining and Metals (ICMM), underscoring its adherence to the highest global standards of responsible mining.

Bolstering India's Critical Minerals Security

The strategic importance of this project extends far beyond environmental stewardship. It directly addresses India's pressing need for critical minerals security. Zinc is indispensable for a wide range of applications, from galvanizing steel for infrastructure to its use in renewable energy components and electric vehicles. With India's domestic zinc demand projected to double over the next decade, securing a stable, internal supply is a national priority.

By creating a new source of zinc and silver from domestic waste, Hindustan Zinc's initiative helps insulate India from volatile global supply chains and reduces its reliance on imports. This aligns perfectly with the government's 'Atmanirbhar Bharat' (self-reliant India) initiative, which seeks to strengthen domestic manufacturing and resource independence. The project's timing is also significant, coming on the heels of the Indian government's announcement of its first-ever Tailings Policy, a regulatory framework designed to encourage and enable the recovery of strategic minerals from mine waste. This synergy between corporate strategy and national policy provides a powerful tailwind for the project's success.

Silver, a co-product of the recycling process, has also become a major economic driver for HZL. With its rising price and essential role in electronics and solar panels, the recovery of additional silver from tailings is expected to provide a substantial financial upside, further validating the economic viability of this circular economy model.

A Global Partnership Forging a New Blueprint

The project's execution rests on a powerful Indo-Australian collaboration that marries local leadership with international technical prowess. Hindustan Zinc, the world's largest integrated zinc producer, provides the strategic vision and operational base. CIMIC Group's companies bring specialized, world-class capabilities to the table.

Sedgman, a global leader with over 45 years of experience in minerals processing, will oversee the detailed engineering and procurement of specialized equipment. The company has delivered over 630 projects worldwide, including 20 in zinc since 2014, and its expertise in advanced techniques like flotation, dewatering, and filtration is critical. These technologies are designed not only to maximize metal recovery but also to enhance water reclamation—a crucial benefit in the water-stressed region of Rajasthan—and reduce overall energy consumption.

Complementing this is the role of Leighton Asia, a seasoned infrastructure developer with a deep-rooted presence in India. Leighton Asia will manage all onshore procurement and construction, leveraging its local knowledge to ensure the project is delivered on time and integrates with the regional community through employment and local sourcing.

Juan Santamaría, CIMIC Group Executive Chairman, highlighted the project's broader context. "This project highlights Sedgman's leadership in minerals processing and Leighton Asia's proven capability in infrastructure delivery," he said. "It reflects CIMIC Group's strategic commitment to supporting the global energy transition through critical minerals development."

This partnership model, combining global technological leadership with robust local execution, is poised to set a new international benchmark for how large-scale resource recovery projects are conceived and delivered. The facility at Rampura Agucha is not merely an addition to Hindustan Zinc's already impressive portfolio, which is on a path to double its production capacity; it is a pioneering venture that demonstrates how the mining industry can evolve to meet the economic and environmental demands of the 21st century.