Hindustan Zinc Ties Up with CIMIC Group to Build India’s First Zinc Tailings Recycling Facility

Hindustan Zinc Ltd. has awarded engineering 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.

The facility will deploy advanced processing technologies to recover residual metals, including zinc and silver, from previously processed tailings, fine waste material left after mineral extraction. By reprocessing legacy tailings, the project aims to convert waste into valuable resources while advancing circular economy practices in the mining sector.

The initiative aligns with India’s broader push for resource efficiency and strengthening domestic supply chains for critical minerals. According to the company, the project will also help reduce environmental impact, improve land utilisation, and enhance long-term mineral security.

The development is part of Hindustan Zinc’s ongoing capacity expansion strategy. In August last year, the company’s board approved an investment of up to INR 3,823 crore to set up a 10 million tonnes per annum zinc tailings recycling facility at Rampura Agucha, with completion targeted within 28 months from the zero date. Following the approval, the company has now moved ahead with awarding engineering, procurement and construction contracts.

Under the agreement, Sedgman will be responsible for detailed engineering and offshore equipment procurement, while Leighton Asia will handle onshore procurement and construction activities. The collaboration brings together global minerals processing expertise and local infrastructure execution capabilities.

Commenting on the development, Hindustan Zinc CEO Arun Misra said that the project marks a shift in mining practices from conventional extraction to optimising existing resources, adding that the facility would serve as a blueprint for re-engineering legacy materials into future supply.

Juan Santamaría, Executive Chairman of CIMIC Group, said that the project reflects the group’s focus on critical minerals development to support the global energy transition, noting that modern tailings reprocessing can unlock additional mineral value for clean energy and digital infrastructure.

Hindustan Zinc, headquartered in Udaipur, operates zinc, lead and silver mines and smelters across Rajasthan and Uttarakhand. Earlier this year, the company approved the first phase of investments to double its production capacity, including plans to expand refined metal capacity by 250 kilotonnes per annum and upgrade mining and milling infrastructure, involving an investment of nearly INR 12,000 crore.

The expansion plans are aligned with projections of rising zinc demand in India over the next decade, driven by infrastructure development and growth in the steel sector.

The company was ranked the world’s most sustainable metals and mining company in the S&P Global Corporate Sustainability Assessment 2025 for the third consecutive year and is India’s first member of the International Council on Mining and Metals.