Hindustan Zinc Secures Gold Block in Rajasthan, Strengthening Precious Metals Portfolio

On November 13, 2024, Hindustan Zinc Limited, part of the Vedanta Group and the world’s second-largest integrated zinc producer, secured a significant achievement. 

The company was selected as the “Preferred Bidder” for the Dugocha Gold Block in Rajasthan through a state government auction. The Department of Mines & Geology, Rajasthan, confirmed this on November 15, 2024. This move strengthens Hindustan Zinc’s position in the precious metals market.

Key Details of the Gold Block

The Dugocha Gold Block is located in Salumber, Rajasthan, covering 472 hectares. The block is at the G3 exploration level and contains an estimated 1.74 million tonnes of resources with a gold grade of 1.63g/t. Hindustan Zinc plans to use its expertise in exploration and mining to maximise the potential of this asset.

Other Strategic Wins

Earlier in November 2024, Hindustan Zinc was also awarded preferred bidder status for 2 tungsten and associated metal blocks in Andhra Pradesh and Tamil Nadu. These wins further bolster the company’s presence in the critical and precious metals sectors, supporting its goal of producing metals vital for the global energy transition.

Commitment to Sustainability

Hindustan Zinc has earned global recognition for its sustainable practices. It was named the world’s most sustainable company in the metals and mining sector by the S&P Global Corporate Sustainability Assessment 2023. The company also launched EcoZen, Asia’s first low-carbon ‘green’ zinc brand, which is produced using renewable energy. EcoZen has a carbon footprint of less than 1 tonne of carbon equivalent per tonne of zinc, about 75% lower than the global average.

Hindustan Zinc is also a water-positive company, certified 2.41 times water-positive, and has committed to achieving net-zero emissions by 2050 or sooner.

Arun Misra, CEO of Hindustan Zinc Limited, stated, “Securing the Dugocha Gold Block is a testament to our prowess in strategic mineral exploration with a view to tapping diverse mineral resources to support the nation’s rapid economic growth and emerging needs. This acquisition not only enhances our precious metals portfolio but also reinforces our ability to deliver long-term value to our shareholders and stakeholders. ”

About Hindustan Zinc

Hindustan Zinc, a part of the Vedanta Group, is a leading global producer of zinc and silver. It holds a 75% market share in India’s primary zinc market and supplies to over 40 countries. The company is known for its innovative and sustainable operations, contributing to a greener future through its products and social welfare initiatives that impact around 2 million people.

On November 18, 2024, Hindustan Zinc share price opened at ₹503.60, touching the day’s high of ₹503.90 as of 11:11 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.