Indian miner Hindustan Zinc Ltd on Friday reported a nearly 12% fall in March quarter profit, hurt mainly by lower zinc and lead prices and higher expenses.

Consolidated net profit fell to 25.83 billion rupees ($314.68 million) in the fourth quarter from 29.28 billion rupees a year earlier.

Zinc prices are down nearly 6% so far this year and have cooled off from record highs hit early last year amid falling demand and uncertainty in top consumer China.

The company’s revenue from operations fell to 82.81 billion rupees from 86.13 billion rupees a year ago. The zinc, silver and lead miner generates around 99% of its revenue from its mining operations, with a small business in wind energy as well.

Hindustan Zinc’s total expenses rose 13.6% in the quarter from a year ago.

The results come as the company faces stiff opposition from the Indian government, which is the largest minority shareholder, over buying Vedanta Ltd’s zinc businesses in cash for $2.98 billion.

The uncertainty over the deal with Vedanta has dented Hindustan Zinc’s shares this year, which are down nearly 15% since touching multi-month highs in January.

The mined metal and refined metal production in fiscal 2024 is expected to be higher than last year, the company said in a press release. Mined metal is expected to be between 1,075-1,100 kilotonnes and refined metal production in the range of 1,050-1,075 kilotonnes.

Project capex for the year is expected to be in the range of $175-200 million, the company added. The cost of production for zinc in FY24 is projected to be between $1,125 per metric tonne and $1,175 per metric tonne.

The company also said its board approved the appointment of Sandeep Modi as the chief financial officer, currently serving as the interim in the same post.