Hindustan Zinc Secures Key Composite Licenses for Critical Mineral Blocks, Expands Strategic Mining Portfolio

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Hindustan Zinc Limited (HZL), a leading global zinc and silver producer, has been declared the preferred bidder for the Composite Licenses of two critical tungsten mineral blocks—Balepalyam in Andhra Pradesh and Nayakkarpatti in Tamil Nadu—following successful e-auctions conducted by the Government of India. This marks a significant expansion of HZL’s footprint in the critical minerals sector, aligning with its strategic focus on diversifying its resource base and supporting India’s energy transition ambitions.

Key Highlights:

Letter of Intent (LOI) Issued: The government has issued the LOI to Hindustan Zinc for the grant of Composite Licenses for the Balepalyam Tungsten and Associated Mineral Block, covering 308.3 hectares, and the Nayakkarpatti Tungsten Block, spanning 2015.51 hectares. Both blocks are at advanced exploration levels (G3 and G4 respectively), indicating promising mineral potential.

Auction Details: HZL won the Balepalyam block with the highest final price offer of 6.55% and Nayakkarpatti at 5.05%, underscoring competitive bidding and strong investor interest.

Regulatory and Environmental Process: The grant of licenses is contingent upon HZL fulfilling payment obligations, securing necessary approvals, and completing environmental and operational clearances. Notably, the Nayakkarpatti block’s mining process is currently on hold due to biodiversity concerns raised by the Tamil Nadu government, with ongoing efforts to redefine block boundaries to protect heritage sites.

Strategic Importance: These acquisitions bolster Hindustan Zinc’s critical minerals portfolio, essential for emerging technologies and clean energy applications. The company’s expertise in sustainable mining positions it well to responsibly develop these resources.

Corporate Profile: Hindustan Zinc operates the world’s third-largest open-pit mine and is a global leader in zinc and silver production. This expansion into tungsten mining reinforces its role in supplying metals crucial for India’s industrial growth and the global energy transition.

Hindustan Zinc’s latest developments highlight its proactive approach to securing strategic mineral assets while navigating regulatory and environmental frameworks, reflecting its commitment to sustainable growth and value creation.

Source: Hindustan Zinc official releases, SharesBazaar, PIB.gov.in