Oct 18 Reuters India39;s Hindustan Zinc is discussing the possibility of splitting the company into two units with the Indian government, which is opposed to the proposal, CEO Arun Misra said on Friday.

We are discussing all the issues regarding the split with the government. Whenever both the sides agree, it will happen, Misra said in an analyst call.

The government39;s proposal to sell a stake in the company is also going on, Misra said.

The company39;s comments comes after India39;s government, the miner39;s largest minority shareholder, had rejected its proposal to split into different units in March, saying it was not convinced such a move would boost shareholder value.

Last year, the company said it planned to create separate entities for its zinc, lead, silver and recycling businesses to unlock potential value.

Misra also said that the company is inviting discussions with global mining contractors to start mine development as it aims to double its output to 2 million ton per annum, adding that the contract should be fixed by November.

The company may look for some debt, equity funding as it goes for a 2 million ton expansion, chief financial officer Sandeep Modi said in the call.

The company on Friday reported betterthanexpected secondquarter profit, helped by gains in zinc prices.

Consolidated net profit rose about 35 from a year ago to 23.27 billion rupees around 277 million in the quarter ended Sept. 30, compared to analysts39; expectations of 22.51…