Hindustan Zinc Shares in Focus; Bags Key Tungsten Block in Andhra Pradesh, Eyes Critical Mineral Expansion

Hindustan Zinc Limited (HZL), a Vedanta Group company, has emerged as the preferred bidder for the Balepalyam tungsten block in Andhra Pradesh. The development marks a significant step toward enhancing India’s critical mineral reserves and aligning with global energy transition trends.

Strengthens Play in Strategic Minerals

Hindustan Zinc announced that it has received a Letter of Intent (LoI) from the Government of Andhra Pradesh for a composite license to mine the 308.3-hectare Balepalyam block, located in the Ananthapuram district. The block includes tungsten and associated minerals, with tungsten being categorised as a critical mineral due to its strategic importance in defence, electronics, and clean energy technologies.

The license was awarded under Rule 18(1) of the Mineral Auction Rules, 2015, following an e-auction conducted by the Ministry of Mines, Government of India.

Why Tungsten Matters?

Tungsten is one of the toughest materials on Earth and plays a key role in:

• Defence and aerospace applications
• Electronics and semiconductors
• EV components and battery technologies
• Industrial tools and cutting equipment

With rising geopolitical sensitivity and increasing demand for local sourcing of strategic materials, securing domestic access to tungsten is a national priority and Hindustan Zinc is now at the forefront.

Q4 FY25 Financial Results

This announcement comes on the back of stellar Q4 earnings for Hindustan Zinc:

• Net profit: ₹3,003 crore (up 47% YoY)
• Revenue: ₹9,087 crore (20% YoY growth)
• EBITDA: ₹4,820 crore (32% YoY growth)
• EBITDA Margin: 53% (up 500 bps)

These figures not only beat market estimates but also reaffirm the company's solid fundamentals and cash-generating capacity, crucial for funding future mining expansions.

Hindustan Zinc Eyes Diversification

Here’s why this acquisition is significant:

• Diversification into critical minerals beyond zinc, silver, and lead.
• Strengthens resource security for industries aligned with India’s defence and clean energy goals.
• Enhances the company’s long-term value proposition amid the global shift to sustainable and secure mineral sourcing.
• Positions Hindustan Zinc to play a larger role in India’s mineral security roadmap.

Share Price Performance

Following the announcement and strong quarterly results, Hindustan Zinc shares ended at ₹443.50, up ₹8.10 or 1.86% on the BSE signalling investor confidence in the company’s forward-looking strategy.

Read More: Vedanta Considers IPO for Zambia Konkola Copper Mines to Fund $1 Bn Investment.

Conclusion

By venturing into critical minerals, the company is not only aligning itself with national priorities but also positioning for long-term global relevance amid the accelerating demand for energy transition technologies.

Coupled with robust financial performance, this move reinforces Hindustan Zinc’s vision of becoming a diversified, forward-looking mining powerhouse. Investors and industry stakeholders alike will be watching closely as the company scales new frontiers in India’s evolving mineral ecosystem.

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