rare earth
Vedanta Group has started taking forward its plans on rare earth metals. The group has prepared a master plan to provide 3 new 'critical minerals' to the country in the next five years. Hindustan Zinc Limited CEO Arun Mishra said in the company's 60th Annual General Meeting (AGM) that the company is planning to include at least three new metals in its portfolio in the next five years.
Its objective is to change from a company that extracts only zinc to a company that produces different types of critical minerals. The Vedanta Group company, which is India's largest producer of zinc and silver, said its long-term strategy is to expand beyond its existing portfolio of zinc, lead, silver and cadmium and enter businesses like rare earths, potash and tungsten.
Mishra told the shareholders that as per our strategic thinking, in the next five years we will have to include about three more new metals in our portfolio. He also said that if the right mineral blocks are found, the company can also explore opportunities in copper or gold fields. This was Mishra's last AGM as CEO of the company. He is going to become the Group CEO of Vedanta Limited in the next two months. Amarendu Prakash, former Chairman and Managing Director of Steel Authority of India, has been elected as the CEO-designate (next CEO) of the company.
Hindustan Zinc's strong participation in the auction organized under the 'Critical Mineral Mission' of the Central Government shows its efforts at diversification. The CEO said that the company has acquired mineral blocks for tungsten, potash and rare-earth elements. This step is in line with the objective of building its presence in the minerals sector which is considered essential for the country's industrial and energy transition.
Management emphasized the strategic importance of each mineral. Mishra said that if we are successful in proving the presence of potash in the block found in Rajasthan, then we will be the first company to mine potash. And since we are going into fertilizer business, this will be a great synergy for us. Tungsten is a metal that is much needed in the industry, and we will be the first company to mine it in India.
The company also sees a lot of potential in the rare-earth blocks won in Uttar Pradesh. According to Mishra, neodymium can be produced from this block. It is an important material used to make permanent magnets required for electric vehicles and other clean-energy technologies. The company also intends to participate in the government's magnet manufacturing auction, which will enable it to move further up the value chain. Mishra told shareholders that Hindustan Zinc will also participate in the government auction to make magnets in India because this is the future.
The objective of these investments is to make Hindustan Zinc a key supplier of essential minerals for sectors like electric mobility, renewable energy, defense and advanced manufacturing. According to the company's annual report, Hindustan Zinc has acquired several key mineral blocks, including tungsten block at Balepalayam (Andhra Pradesh), rare-earth elements (REE) block at Navatola, Laband (Uttar Pradesh) and potash block at Jhandawali, Satipura (Rajasthan).
Mishra said that this diversification is happening in line with its Rs 40,000-45,000 crore expansion program, which aims to double the annual metal production to 2 million tonnes. He said the company has the financial strength to raise funds to both expand capacity and enter into new minerals, while also continuing to deliver returns to shareholders.
During the AGM, shareholders asked management questions about the benefits of rare-earth diversification and key drivers of growth over the next five years. Also, he urged the company to consider issuing bonus shares on the occasion of its 60th AGM. Hindustan Zinc reported nearly 20 per cent increase in revenue from operations at Rs 40,844 crore in FY26, while profit increased by 34 per cent at Rs 13,832 crore. Vedanta Limited holds 60.71 percent stake in Hindustan Zinc, while the Central Government holds 27.92 percent and the remaining 11.37 percent is held by public shareholders.
