Hindustan Zinc Limited (HZL), a subsidiary of the Vedanta Group, has been declared the preferred bidder for two critical mineral blocks in India: a potash and halite block in Rajasthan and a rare earth elements (REE) block in Uttar Pradesh. This strategic acquisition marks a significant step in India’s journey toward self-reliance in essential minerals.
Details of the Acquired Blocks
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Potash and Halite Block: Located in the Hanumangarh district of Rajasthan, this block spans approximately 1,841 hectares and is currently at the G3 level of exploration. Potash is a vital component in the production of fertilizers, and India’s current reliance on imports makes this acquisition crucial for domestic agriculture.
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Rare Earth Elements Block: Situated in the Sonbhadra district of Uttar Pradesh, this block covers around 210 hectares and is also at the G3 exploration stage. Rare earth elements are essential for various high-tech applications, including electronics, renewable energy, and defense sectors.
Strategic Significance
India currently imports 100% of its potash requirements, primarily from countries like Canada, Belarus, and Jordan. The successful auction of the country’s first potash and halite block is a significant move toward reducing this dependency. Similarly, securing a domestic source of rare earth elements will bolster India’s position in the global technology and manufacturing sectors.
Company’s Vision
Arun Misra, CEO of Hindustan Zinc, emphasized the company’s commitment to supporting India’s mineral security goals. He stated that these acquisitions align with HZL’s strategy to diversify into critical minerals, thereby enhancing its role in the nation’s economic growth and sustainability efforts.