Hindustan Zinc eyes three new metals in five years

Hindustan Zinc Ltd plans to add at least three new metals to its portfolio in the next five years as it aims to transform from a zinc-focused miner to a diversified critical minerals company, chief executive Arun Misra said at its 60th annual general meeting on Monday.

Vedanta Group company, India’s largest zinc and silver producer, said its long-term strategy is to diversify its existing zinc, lead, silver and cadmium portfolio by entering businesses such as rare earths, potash and tungsten.

“According to our strategic vision, we should add around three new metals to our portfolio in the next five years,” Misra told shareholders, adding that the company could also pursue copper or gold opportunities if suitable mineral blocks are available.

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This was Misra’s last AGM as CEP of the company. He will become the group CEO of Vedanta Ltd in the next two months. Mint It was reported on June 15. Amarendu Prakash, former chairman and managing director of the Steel Authority of India, has been appointed as the CEO of the company.

Diversification offer

Hindustan Zinc’s aggressive participation in auctions held under the Centre’s Critical Minerals Mission reflects its drive to diversify. The CEO said the country has already secured mineral blocks for tungsten, potash and rare earths, in line with its goal to build assets in minerals considered critical to the industrial and energy transition.

Management emphasized the strategic importance of each mineral. “If we can successfully prove the presence of Potash in the block we have acquired in Rajasthan, we will be the first to mine potash and this is a perfect synergy for us as we are entering the fertilizer business. Tungsten is a metal that is much needed by the industry and we will be the first to mine it in India,” Misra said.

The company also sees significant potential in the rare earth block it has won in Uttar Pradesh. According to Misra, the block could produce neodymium, an important material used in permanent magnets needed for electric vehicles and other clean energy technologies.

It also plans to participate in state magnet production tenders, which will enable it to move higher in the value chain.

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“Hindustan Zinc will also participate in the government’s auction for magnet production in India because this is the future,” Misra told shareholders.

Expansion program

Together, these investments aim to position Hindustan Zinc as a major supplier of critical minerals for sectors such as electric mobility, renewable energy, defense and advanced manufacturing.

According to its annual report, Hindustan Zinc has secured critical mineral blocks, including a tungsten block at Balepalyam (Andhra Pradesh), a rare earth elements (REE) block at Nawatola, Laband (Uttar Pradesh) and a potash block at Jhandawali, Satipura (Rajasthan).

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Diversity comes with ₹A 40,000-45,000 crore expansion program has been undertaken to double annual metal production to 2 million tonnes, Misra said, adding that the company has the financial strength to finance both capacity expansion and entry into new mines while maintaining shareholder returns.

During the AGM, shareholders questioned management on the benefits of rare earth diversification and key growth drivers for the next five years and urged the company to consider issuing bonus shares on the occasion of the 60th AGM.

Hindustan Zinc reports nearly 20% increase in revenue from operations ₹40,844 crore in FY26, while profit increased by 34% ₹13,832 crore. Vedanta Ltd holds a majority stake of 60.71% in Hindustan Zinc, while the Center holds 27.92% and public shareholders hold the remaining 11.37%.