Vedanta's Hindustan Zinc Gears Up for Potash Mining, Rajasthan Block in Focus.

Hindustan Zinc Ltd (HZL), a Vedanta Group company, is setting its sights on potash mining with a particular interest in a block located in Rajasthan. According to a top company official, this block also presents promising prospects for lithium reserves.

This strategic move comes as India heavily relies on potash imports, primarily from nations like Russia, Canada, Belarus, and Israel, and is actively seeking ways to diminish this dependence.

Beyond this venture, HZL is outlining plans for a broader expansion beyond its established base metals operations in zinc and lead, as well as its precious metal silver business. The company intends to explore opportunities in all critical minerals that align with its strategic interests.

Notably, HZL was recently declared the preferred bidder for the Dugocha gold block in Rajasthan, a development that will further diversify its portfolio into precious metals.

"So all the critical mineral blocks, as I said, we have got gold...block, we have got tungsten block. So Hindustan Zinc will expand beyond zinc, lead and silver," stated HZL CEO Arun Misra. "We will expand into all critical minerals, whichever is of strategic interest to us, including not only minerals, including potash. Potash is there in Rajasthan. There are also chances of lithium association there (in the potash block). So we will look at that."  

Furthermore, HZL was awarded the Balepalyam Tungsten Block in Andhra Pradesh. The company is also keen on participating in the auctions of all mineral blocks across the country. Its subsidiary, Hindmetal Exploration Services Pvt Ltd, is actively focused on strategic mineral exploration, particularly in critical minerals.

"I am sure they (the company) will turn out to be the biggest private explorer as far as India is concerned," Misra added.  

This foray into new mineral territories underscores HZL's ambition to diversify its operations and contribute to India's self-sufficiency in critical resources.

HBL