Hindustan Zinc Bags 1,841-Hectare Potash-Halite Block in Rajasthan Through E-Auction

17 Jul 2025 , 01:31 PM

Hindustan Zinc Ltd (HZL), a Vedanta Group company, said on Wednesday it has received a Letter of Intent (LoI) from the Ministry of Mines for a key mineral block in Rajasthan. The license pertains to the Jhandawali–Satipura Amalgamated potash and halite block, located in the Hanumangarh district.

Spanning over 1,841 hectares, the block was awarded to Hindustan Zinc after the company emerged as the preferred bidder in a government-conducted e-auction process. The grant falls under a composite license, covering both exploration and mining rights.

The announcement coincided with the company’s operational update for the first quarter of FY26, where production trends were mixed across segments.

In terms of mined metal, HZL posted its highest-ever Q1 output at 265 kilo tonnes, up 1% compared to the same period last year. However, sequentially, production fell by 15%, largely due to routine mine preparation and planning activities undertaken during the quarter.

Refined metal output stood at 250 kilo tonnes, down 5% year-on-year and 7% quarter-on-quarter. This included 202 kilo tonnes of zinc and 48 kilo tonnes of lead, with lower plant availability and scheduled maintenance contributing to the dip.

Meanwhile, Hindustan Zinc Alloys, the company’s wholly owned subsidiary, recorded its highest-ever quarterly output at 5.1 kilo tonnes, reflecting strong downstream demand.

Silver production declined to 149 tonnes, marking an 11% drop from the year-ago period and a 16% fall compared to the previous quarter. The decrease was attributed to lower silver contribution from the SK mine and a relatively high base in the March quarter due to higher work-in-progress liquidation.

On the renewable energy front, wind power generation jumped sharply to 134 million units, a 24% increase from last year and more than double the previous quarter’s figures. The surge was driven by seasonal changes in wind velocity.

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