Hindustan Zinc Plans Uranium and Rare Earth Mining Amid Policy Shift

Hindustan Zinc, part of the Vedanta Group, has expressed interest in uranium mining if the Indian government allows private companies to participate. CEO Arun Misra told Reuters that the company would be among the first bidders for new uranium blocks, stressing the importance of uranium for India’s energy needs.

India’s Nuclear Energy Push

The government is considering opening up uranium mining, imports, and processing to private firms, a major policy change for the tightly controlled nuclear sector. India aims to increase its nuclear power generation capacity 12 times by 2047, which could attract billions in private investment.

Rare Earth Mineral Exploration

Alongside uranium, Hindustan Zinc is moving into rare earth mining. The company recently won a block in Uttar Pradesh and plans to start extracting neodymium, a key element in magnets used for motors and generators, within 5–6 years.

Global Partnerships and Other Minerals

To explore and develop its rare earth block, Hindustan Zinc has floated global tenders. It is also exploring opportunities in lithium, antimony, germanium, copper, and graphite, with help from partners in Australia, South Africa, Peru, Chile, and China.

Core Zinc Business Growth

While expanding into new minerals, the company also plans to double its zinc production capacity to 2 million metric tonnes.

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Hindustan Zinc Share Price Movement

Hindustan Zinc share price is currently trading at ₹429.25, up by 0.50% as of August 19, 2025, 3:30 pm IST. The stock opened at ₹433.70 and touched a high of ₹433.70 and a low of ₹426.45 during the day. With a market capitalisation of ₹1.81 lakh crore, the company has a price-to-earnings (P/E) ratio of 17.73. It offers an attractive dividend yield of 5.65%, with a quarterly dividend payout of ₹6.06 per share. Over the past year, the stock has recorded a 52-week high of ₹575.40 and a low of ₹378.15.

Conclusion

If the government allows private participation, Hindustan Zinc could become a key player in India’s nuclear fuel and critical minerals sector, reducing import reliance and strengthening the country’s clean energy ambitions.

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