Hindustan Zinc Signs Six-Year Deal to Deploy 30 Electric Trucks for Mine-to-Smelter Logistics
Hindustan Zinc Limited (NSE: HINDZINC) has signed a six-year transportation agreement with MFL India Limited for the deployment of 30 electric trucks to transport zinc and lead concentrates from its Rampura Agucha mine to its smelting operations in Rajasthan.
The agreement, which can be extended by another two years, is part of Hindustan Zinc’s broader strategy to reduce emissions across its mine-to-smelter logistics network.
The development strengthens the company’s focus on electrification and alternative-fuel transportation while supporting its longer-term Net Zero emissions target by 2050 or sooner.
30 Electric Trucks to Replace Diesel Vehicles
Under the agreement, MFL India will progressively deploy 30 electric trucks to replace conventional diesel vehicles used to transport zinc and lead concentrate.
The trucks will operate on the route connecting Rampura Agucha, described by the company as the world’s largest underground zinc mining operation, with its smelting facilities in Rajasthan.
The agreement has an initial tenure of six years, with an option to extend it by another two years.
This creates a relatively long-term framework for the electrification of an important part of Hindustan Zinc’s logistics operations.
Dedicated EV Charging Infrastructure
An important part of the arrangement is the development of dedicated charging infrastructure.
MFL India will establish and operate the required EV charging infrastructure for the electric truck fleet.
This is significant because the transition from diesel to electric commercial vehicles requires more than simply replacing the vehicles. Reliable charging infrastructure is critical for maintaining operational availability on industrial transportation routes.
The project therefore combines:
Electric trucks + dedicated charging infrastructure + long-term transportation contract
This could provide Hindustan Zinc with a more structured pathway to electrify concentrate transportation.
Focus on Mine-to-Smelter Decarbonisation
Hindustan Zinc is using the initiative as part of its wider mine-to-smelter decarbonisation programme.
The company said the move is intended to progressively replace conventional diesel vehicles while maintaining the reliability of its transportation network.
The company is also working with MFL to manage the higher capital requirements associated with emerging technologies such as EVs and LNG.
The transition will be phased as the electric fleet and charging infrastructure are established.
Hindustan Zinc Already Has 232 Cleaner Vehicles
The latest initiative builds on Hindustan Zinc’s existing adoption of cleaner mobility.
During FY2026, the company added 42 electric vehicles for transporting materials across its operations.
This took its green logistics fleet to 232 vehicles, comprising:
- 52 electric vehicles
- 180 LNG vehicles
The company has been progressively introducing electric and alternative-fuel vehicles across its mining and logistics operations.
Hindustan Zinc has also deployed battery-electric vehicles in underground mining at its Sindesar Khurd Mine in Rajpura Dariba, Rajasthan.
The company has subsequently expanded cleaner mobility across mining equipment, material transportation and workforce mobility.
Renewable Energy Share Reaches Nearly 22%
The electric-truck initiative is part of a broader decarbonisation strategy.
Hindustan Zinc said the share of renewable energy in its power mix has increased to nearly 22%.
The company is continuing to focus on:
- Renewable power
- Electrification
- Energy efficiency
- Low-carbon technologies
- Cleaner transportation
- Decarbonisation across its value chain
The company aims to achieve Net Zero emissions by 2050 or sooner.
What Does This Mean for Investors?
The immediate financial impact of the six-year transportation agreement cannot be quantified because the company has not disclosed the contract value or expected cost savings.
Therefore, investors should not treat the announcement as equivalent to a conventional large-value order.
However, the development has strategic importance.
Lower dependence on diesel logistics
Replacing diesel trucks with electric vehicles could reduce the company’s exposure to diesel consumption and potentially lower emissions from material transportation.
Long-term logistics transition
The six-year agreement provides a longer-term framework for introducing electric vehicles into an important industrial logistics route.
ESG positioning
The move supports Hindustan Zinc’s broader sustainability strategy and could strengthen its position among global customers and investors increasingly focused on carbon intensity.
Potential operational benefits
Over time, electric mobility could potentially provide operating-cost benefits depending on electricity costs, vehicle utilisation, charging infrastructure efficiency and maintenance requirements.
However, these benefits should be evaluated once sufficient operating data becomes available.
Management Commentary
Amarendu Prakash, CEO and Whole-time Director of Hindustan Zinc, said the transition toward electric trucks is another step toward the future of responsible and efficient mining.
According to the company, the initiative demonstrates how industrial decarbonisation can also strengthen competitiveness while creating an ecosystem involving partners and local communities.
MFL India Chairman and Managing Director Anil Thukral said the deployment demonstrates how electric mobility can be integrated into large-scale transportation networks when supported by appropriate charging infrastructure and operational planning.
Investor Takeaway
The six-year agreement to deploy 30 electric trucks is strategically positive for Hindustan Zinc, although its direct financial impact is currently difficult to quantify.
The more important takeaway is that Hindustan Zinc is continuing to move beyond conventional diesel-based logistics toward electric and alternative-fuel transportation.
The company already operates a green logistics fleet of 232 vehicles, including 52 EVs and 180 LNG vehicles, while renewable energy now accounts for nearly 22% of its power mix.
For investors, the key things to monitor will be the pace of EV deployment, operational cost savings, emissions reduction, expansion of electric logistics to other routes and the company’s progress toward its Net Zero target.
Overall, the announcement is worth covering as part of Hindustan Zinc’s decarbonisation and operational-efficiency story, but it is not a high-impact earnings or order-book catalyst.