Hindustan Zinc Shares in Focus; Plans Potash Mining in Rajasthan, Eyes Lithium Reserves

Hindustan Zinc Ltd. (HZL), a leading player in the global zinc and silver market, is making significant strides in diversifying its mineral portfolio. The company, part of the Vedanta Group, has announced plans to venture into the potash mining sector and is particularly focusing on a promising block in Rajasthan, as per news reports.

Hindustan Zinc’s Strategic Expansion

Rajasthan, the site of HZL’s new potash mining project, is also believed to have the potential for lithium reserves, adding further strategic value to the company’s mining endeavours.

This is in line with India’s broader goal of reducing its reliance on potash imports, which are primarily sourced from countries like Russia, Canada, Belarus, and Israel. The presence of lithium could provide Hindustan Zinc with an additional competitive edge as the country looks to strengthen its position in the critical minerals sector.

Arun Misra, the CEO of Hindustan Zinc, emphasised that the company is broadening its focus to include a range of critical minerals that are of strategic importance. In addition to potash, HZL has already made significant progress in expanding its precious metals portfolio, having recently been declared the preferred bidder for the Dugocha gold block in Rajasthan.

Hindmetal Exploration Services Leads HZL’s Push

HZL’s subsidiary, Hindmetal Exploration Services Pvt Ltd, has been tasked with driving the company’s exploration efforts, particularly in the critical minerals space. According to Misra, Hindmetal is poised to become one of India’s largest private sector explorers of strategic minerals, which will further solidify Hindustan Zinc’s leadership in the country’s mining sector.

In addition to its expansion plans, Hindustan Zinc recently reported impressive financial results for the quarter ended March 2025. The company posted a 47.3% increase in consolidated net profit, amounting to ₹3,003 crore, driven by record metal volumes and lower production costs.

This expansion into potash and other critical minerals reflects Hindustan Zinc’s strategic vision to diversify its mining operations and secure long-term growth opportunities in a rapidly evolving market.

Read More: Hindustan Zinc Delivers Record Growth in FY25 with Strong Q4 Results and ESG Leadership. 

Share Price Performance 

Hindustan Zinc Limited (HZL) shares are trading at ₹454.40, reflecting a gain of ₹9.40, or 2.11%, at 11:45AM on the NSE from the previous close of ₹445. The stock opened at ₹452 and reached a high of ₹459.50 during the session, with a low of ₹445.50. 

Conclusion

Hindustan Zinc’s plans to expand into potash mining and critical minerals, including its strategic move into Rajasthan for new exploration, signal the company’s commitment to diversifying its operations.

With strong financial results and a focus on acquiring valuable mineral assets, HZL is set to play a crucial role in reducing India’s reliance on imported minerals while continuing to thrive in the global mining industry.

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