Hindustan Zinc Limited (HZL), a Vedanta Group company, is preparing for a major diversification push into rare earths and critical minerals. At the company’s 59th Annual General Meeting, Chairperson Priya Agarwal Hebbar announced that HZL is broadening its portfolio beyond zinc and silver to include copper, lithium, nickel, cobalt, potash, and rare earths. The company has also begun work on exploring minerals such as neodymium, antimony, graphite, and germanium, all of which play a vital role in high-tech industries.
Acquisition of Rare Earth Assets
HZL recently achieved a significant milestone by securing a rare earth monazite block in government-led auctions. Unlike the bit-sand monazite mined by Indian Rare Earths Ltd, this deposit is land-based and non-radioactive, making it unique.
India’s reserves of monazite are considered highly valuable, especially for neodymium, a critical element in manufacturing permanent magnets used across industrial, energy, and technological applications.
India’s Fifth Mineral Auction
In its latest mineral auction round, the Government of India included potash, tungsten, and rare earth blocks for the very first time. HZL was among the successful bidders, strengthening its presence in strategic minerals.
This move aligns with India’s broader objective of securing access to critical raw materials that are essential for its clean energy transition and technological growth.
Embracing AI and Drone Technology
To accelerate exploration, HZL has floated international tenders for the use of artificial intelligence (AI) and drone-based surveys. The company is seeking partnerships with global firms from Australia, South Africa, Chile, and China to leverage advanced exploration techniques.
Such technologies are expected to not only improve efficiency but also reduce exploration risks and costs.
Why Rare Earths Matter
Rare earth elements (REEs) are indispensable in the modern economy. They are widely used in:
- Smartphones and consumer electronics
- Electric vehicles (EVs) and wind turbines
- Defence systems and aerospace technologies
- Advanced magnets and industrial equipment
Despite being relatively abundant in the Earth’s crust, economically viable deposits are limited. Mining and processing are complex, often energy-intensive, and heavily concentrated in China, which currently controls 60–70% of global production and refining capacity.
India’s focus on rare earth exploration — supported by initiatives like HZL’s diversification — is therefore seen as a crucial step in reducing global dependence on imports and ensuring supply chain security.
✅With this expansion into rare earths and adoption of cutting-edge exploration methods, Hindustan Zinc is positioning itself as a key player in India’s mineral security and future technology landscape.
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