India: Hindustan Zinc targets 3 new critical minerals in 5 years, strengthens diversification with UP rare earth licence

• HZL executes composite licence for 210-hectare UP rare-earth block
  
  
• INR 40,000-45,000 crore expansion to double metal output to 2 mnt/year
  
  

Hindustan Zinc Ltd (HZL) plans to add at least three new critical minerals to its portfolio over the next five years as it accelerates its transition from a zinc-focused miner into a diversified critical minerals producer, Chief Executive Officer Arun Misra said during the company's 60th Annual General Meeting (AGM) on Monday.

The Vedanta Group company, India's largest integrated zinc producer and among the world's largest silver producers, aims to diversify beyond zinc, lead, silver and cadmium by developing businesses in rare earth elements (REE), potash, and tungsten. The company will also evaluate opportunities in copper and gold should commercially viable mineral blocks become available.

"In our strategic vision, in the next five years we must add about three more new metals to our portfolio,"Misra said, adding that critical minerals will become a major pillar of Hindustan Zinc's long-term growth strategy.

The diversification programme has gathered pace following the company's success in government auctions under the National Critical Mineral Mission. Hindustan Zinc has secured three strategic mineral blocks: a 210.01-hectare rare-earth elements block at Nawatola Laband in Sonbhadra district of Uttar Pradesh, a tungsten block at Balepalyam in Andhra Pradesh, and a potash block at Jhandawali-Satipura in Rajasthan.

On 27 June, the company executed the Deed for Grant of Composite Licence with the Uttar Pradesh government for the Nawatola Laband REE block. The licence allows reconnaissance, prospecting and exploration activities under the Mines and Minerals (Development and Regulation) Act, 1957. Subject to successful exploration and statutory approvals, the company will be eligible to obtain a mining lease for commercial production.

Management said each mineral offers strategic value. The Rajasthan potash block could enable Hindustan Zinc to become India's first domestic potash producer, creating synergies with the fertiliser sector. The Andhra Pradesh asset could establish the country's first domestic tungsten mine, reducing dependence on imports for a metal widely used in defence, engineering and high-performance industrial applications.

The Uttar Pradesh REE 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 the government's proposed permanent magnet manufacturing auctions, enabling downstream integration into value-added products.

The critical minerals strategy will complement Hindustan Zinc's ongoing INR 40,000-45,000 crore expansion programme, under which the company plans to double annual refined metal production capacity from around 1 million tonnes (mnt) to 2 mnt over the coming years. Management said the balance sheet remains strong enough to fund both capacity expansion and entry into new mineral businesses while maintaining shareholder returns.

The company reported strong financial performance in FY'26, with revenue from operations rising nearly 20% y-o-y to INR 40,844 crore, while net profit increased 34% to INR 13,832 crore, providing financial flexibility for its expansion strategy.

Hindustan Zinc's shareholding remains dominated by Vedanta Ltd, which owns 60.71%, while the Government of India holds 27.92% and public shareholders account for the remaining 11.37%.

The AGM also marked Arun Misra's final shareholders' meeting as CEO before he assumes the role of Group CEO at Vedanta Ltd in the coming months. Amarendu Prakash, former Chairman and Managing Director of Steel Authority of India Ltd, has been appointed Chief Executive Officer-designate.