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Hindustan Zinc Signs MoU with TERI for 250-Hectare Ecological Restoration Project at Rajasthan Smelter Complex

Hindustan Zinc Signs MoU with TERI for 250-Hectare Ecological Restoration Project at Rajasthan Smelter Complex

Hindustan Zinc has signed a memorandum of understanding with The Energy and Resources Institute to develop a 250-hectare ecological restoration project at its Chanderiya lead zinc smelter complex in the Chittorgarh district of Rajasthan, India. The project scales up an existing restoration programme at the site where the company has already restored 22.25 hectares of industrial wasteland at the Jarofix yard using TERI's Mycorrhiza technology, building on a validated proof of concept before committing to the significantly larger restoration area. The MoU represents one of the more substantial industrial land rehabilitation commitments announced by an Indian mining and metals company and reflects the growing recognition that land restoration is a core component of responsible resource extraction and processing.

 

The Mycorrhiza Technology and Its Restoration Science

 

TERI's Mycorrhiza technology applies naturally occurring soil fungi that form symbiotic relationships with plant roots, enhancing nutrient and water uptake in degraded or contaminated soils where conventional revegetation approaches fail to establish viable plant communities. Industrial smelter sites present particularly challenging restoration conditions due to heavy metal contamination of soil, compaction, loss of biological activity and the absence of the seed banks and mycorrhizal networks that underpin natural vegetation recovery in undisturbed ecosystems. The technology effectively reintroduces the biological foundation that industrial processes have eliminated, creating conditions in which plant communities can establish and develop progressively without intensive ongoing intervention.

The demonstrated restoration of 22.25 hectares at the Chanderiya Jarofix yard in advance of the larger MoU commitment provides a site-specific validation that the technology works under the actual soil and contamination conditions present at the complex. This prior deployment significantly reduces the technical risk associated with scaling to 250 hectares, as the mycorrhizal communities, plant species selection and restoration protocols can be refined from real operational experience rather than theoretical projections. Hindustan Zinc's partnership with TERI, one of India's leading energy and environment research institutions, ensures that the science underpinning the restoration programme meets the standards required for credible third-party verification.

 

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Regulatory and Investor Context for Industrial Restoration

 

The Hindustan Zinc and TERI MoU reflects a broader trend in which Indian industrial companies are making more substantive biodiversity and land restoration commitments in response to expanding mandatory ESG disclosure requirements and heightened international investor scrutiny of mining sector environmental performance. India's commitments under the Kunming-Montreal Global Biodiversity Framework, which sets a global target of restoring 30 percent of degraded ecosystems by 2030, are increasingly influencing the environmental obligations placed on industrial companies operating within the country. For mining and metals companies with large land disturbance footprints, credible restoration programmes are becoming material to both regulatory compliance and investor confidence.

International institutional investors are applying growing scrutiny to the land use and biodiversity impacts of extractive industry holdings, with frameworks including the TNFD providing structured approaches for assessing and disclosing nature-related financial risks and dependencies. A demonstrated restoration programme of 250 hectares using a scientifically validated technology, conducted in partnership with a credible research institution, positions Hindustan Zinc more favourably within these assessment frameworks than aspirational targets unsupported by existing operational evidence. The Rajasthan project therefore serves both a genuine environmental purpose and a commercial function in strengthening the company's ESG profile for investors evaluating mining sector biodiversity exposure.

 

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Outlook for Industrial Land Restoration at Scale

 

Whether the full 250-hectare restoration can be achieved within a meaningful timeline and with verifiable ecological outcomes will depend on the pace of site preparation, the performance of the Mycorrhiza technology across varied conditions present across a large and complex industrial site and the robustness of the monitoring and verification framework deployed to confirm restoration progress. If the project delivers measurable improvements in soil health, vegetation cover and local biodiversity across the target area, it would provide a compelling reference case for similar initiatives across India's mining and metals sector. Sustained delivery would demonstrate that industrial wasteland at smelter complexes can be cost-effectively restored to ecologically functional landscapes using biological approaches, potentially catalysing broader adoption of mycorrhiza-based restoration methods across comparable sites throughout the country.

 

 

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DD

Daniel Dun

Senior Advisor

Daniel is a finance professional with experience across commodities trading, investment banking, and private credit, having worked with firms like Glencore and BTG Pactual across global markets. He has worked on carbon offset products and project finance, with a focus on sustainability and capital markets. He has also supported product management at BlockFi, helping bridge DeFi and traditional finance. Daniel holds a Master’s degree in Economics.

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