Hindustan Zinc Receives LOI for Potash and Halite Block in Rajasthan

Hindustan Zinc Limited (HZL) has received a Letter of Intent (LOI) from the Ministry of Mines, Government of India, as per the reports. The LOI is for a potash and halite block located in the Hanumangarh district, Rajasthan. The block was allocated under Tranche V of the central government’s e-auction conducted in May 2025.

The awarded block is titled the Jhandawali–Satipura Amalgamated Potash and Halite Block. It covers an area of 1,841.25 hectares. The LOI grants HZL a composite licence under Rule 18(1) of the Mineral Auction Rules, 2015, which includes rights for both prospecting and mining.

Mineral Allocations

Earlier this month, HZL received another LOI from the Government of Uttar Pradesh for a Rare Earth Elements (REE) block. The company had also previously secured a block for tungsten and associated minerals in Andhra Pradesh. This brings its total count of critical mineral assets to 3.

Potash is mainly used in manufacturing NPK fertilisers. These fertilisers are a major input in Indian agriculture. At present, India imports all of its potash from other countries, including Canada, Belarus, Jordan, and South Korea.

Read more: Hindustan Zinc Announced Capex of ₹12,000 Crore: Plans Capacity Expansion by 250 ktpa!

Policy Intent Behind Allocation

The allocation of domestic potash blocks is part of efforts to reduce dependence on imports. It is also aimed at encouraging private sector participation in critical mineral exploration and mining through the government’s auction mechanism.

The company disclosed the LOI receipt in its stock exchange filing dated July 16, 2025. The announcement follows an earlier communication dated May 28, 2025, in which HZL confirmed it was selected as the preferred bidder for the block.

Hindustan Zinc Share Price Performance 

As of 10:52 AM on July 17, 2025, Hindustan Zinc share price was trading at ₹436.80, a 0.37% increase.

Conclusion

With the latest allocation in Rajasthan, Hindustan Zinc has added to its portfolio of critical mineral resources. The company now holds potash, REE, and tungsten blocks across three different states.

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