en.Wedoany.com Reported - Hindustan Zinc Ltd (HZL) is accelerating its critical minerals diversification strategy, having secured three strategic mineral blocks in Uttar Pradesh, Andhra Pradesh, and Rajasthan, with plans to add at least three new critical minerals over the next five years. The company's Chief Executive Officer, Arun Misra, disclosed these developments at the company's 60th Annual General Meeting on Monday.
The Vedanta Group subsidiary is India's largest integrated zinc producer and one of the world's largest silver producers. Its goal is to develop rare earth elements (REE), potash, and tungsten operations, further diversifying beyond zinc, lead, silver, and cadmium. The company will also evaluate copper and gold opportunities if commercially viable mineral blocks become available. Misra stated that critical minerals will become a major pillar of Hindustan Zinc's long-term growth strategy.
The company's diversification plan has accelerated following progress in government auctions under India's National Critical Mineral Mission. Hindustan Zinc has secured three strategic mineral blocks: a 210.01-hectare rare earth element block in Nawatola Laband, Sonbhadra district, Uttar Pradesh; a tungsten block in Balepalyam, Andhra Pradesh; and a potash block in Jhandawali-Satipura, Rajasthan. On June 27, the company signed a composite license grant deed with the Uttar Pradesh government for the Nawatola Laband rare earth block, permitting reconnaissance, exploration, and prospecting activities under the Mines and Minerals (Development and Regulation) Act, 1957. Following successful exploration and statutory approvals, the company will become eligible for a mining lease for commercial production.
Management stated that each mineral holds strategic value. The potash block in Rajasthan could make Hindustan Zinc India's first domestic potash producer, creating synergies with the fertilizer industry. The Andhra Pradesh resource could establish the country's first domestic tungsten mine, reducing import dependence for a metal widely used in defense, engineering, and high-performance industrial applications. The Uttar Pradesh rare earth block is expected to contain neodymium, a critical rare earth element used in permanent magnets for electric vehicles, wind turbines, and other clean energy technologies. The company also plans to participate in government-proposed auctions for permanent magnet manufacturing, enabling integration into downstream value-added products.
The critical minerals strategy will complement Hindustan Zinc's ongoing ₹400-450 billion expansion plan. Under this plan, the company aims to double its annual refined metal production capacity from approximately 1 million tonnes to 2 million tonnes over the next few years. Management stated that the balance sheet remains strong enough to simultaneously fund capacity expansion and entry into new mineral businesses while maintaining shareholder returns. The company reported financial performance for fiscal year 2026, with revenue growing nearly 20% year-on-year to ₹408.44 billion and net profit increasing 34% to ₹138.32 billion.
In Hindustan Zinc's shareholding structure, Vedanta Ltd holds 60.71%, the Government of India holds 27.92%, and public shareholders hold the remaining 11.37%. At the Annual General Meeting, Arun Misra revealed that he will soon assume the role of Chief Executive Officer of Vedanta Group, and Amarendu Prakash, former Chairman and Managing Director of Steel Authority of India Ltd, has been appointed as the incoming Chief Executive Officer.
