India: Vedanta’s zinc operations post record production, cost efficiencies in Q2FY’26

• Mined metal production rises 1% y-o-y to highest-ever volume
• Company approves India’s 1st zinc tailing reprocessing plant

Vedanta Limited delivered a robust performance in its zinc segment during the second quarter of FY’26, led by record mined metal output, strong cost optimisation, and significant project advancements across both domestic and international operations.

At Hindustan Zinc Limited (HZL), mined metal production reached 258,000 tonnes (t) in Q2FY’26, marking a 1% y-o-y increase to the highest volume ever. The company achieved its lowest quarterly cost of production (COP) in five years at $994/t, reflecting a 7% y-o-y and 2% q-o-q improvement. This was supported by operational efficiency, lower energy costs, and process optimisation across its smelting and mining units. Refined metal output stood at 246,000 t, while refined zinc production increased by 2% y-o-y to 202,000 t.

HZL’s financial performance remained strong, with segmental revenue at INR 8,235 crore, a 4% y-o-y increase, and EBITDA at INR 4,434 crore, up 8% y-o-y, driven by higher LME prices, favourable forex movements, and improved cost metrics. The company also commissioned a 160,000 t/year roaster at Debari, completed debottlenecking at its Dariba Smelting Complex, and approved India’s first 10 t/year zinc tailings reprocessing plant at Rampura Agucha — a pioneering move towards resource efficiency and circular economy practices.

Internationally, Zinc International’s mined metal production surged 38% y-o-y and 6% q-o-q to 60,000 t, led by a 54% increase at its Gamsberg operations in South Africa. The unit’s cost of production remained stable despite currency pressures and higher treatment charges, with further improvement expected as volumes rise.

Notably, HZL became the first Indian mining company to join the International Council on Mining and Metals (ICMM), underscoring its global leadership in responsible mining practices.

With low-cost operations, record production, and strategic capacity expansions, Vedanta’s zinc business continues to strengthen its position as a global leader in sustainable zinc production.