Hindustan Zinc Secures Government Approval for Potash Block in Rajasthan

Metal Production

Hindustan Zinc Limited, India’s only and the world’s largest fully integrated zinc producer, has received a Letter of Intent (LOI) from the Ministry of Mines, Government of India, for one of the country’s earliest potash blocks. The block was awarded under Tranche V of the central e-auction process held in May 2025.

This development follows two other recent LOIs received by the company: one for a Rare Earth Elements (REE) block in Uttar Pradesh and another for a Tungsten and Associated Minerals block in Andhra Pradesh. With these additions, Hindustan Zinc has now secured three high-value mineral assets, reinforcing its position in India’s evolving critical minerals sector.

The newly allocated potash block, located in Hanumangarh district, Rajasthan, spans over 1,800 hectares. This acquisition represents a key milestone in Hindustan Zinc’s transition from a zinc-focused enterprise to a diversified multi-mineral company.

Arun Misra, CEO of Hindustan Zinc Limited, commented “Our strength lies in our deep capabilities in strategic mineral exploration. This step aligns perfectly with our vision to expand into the critical minerals space, contributing meaningfully to India’s mineral independence and economic growth.”

Potash plays a crucial role in the fertiliser industry, particularly in the production of NPK fertilisers, vital to India’s agricultural sector. Currently, India imports all of its potash, primarily from nations such as Canada, Belarus, Jordan, and South Korea. The successful allocation of potash and halite blocks in India is a major move toward reducing this dependency and ensuring a stable, domestic supply for the country’s farmers.

These strategic additions are part of Hindustan Zinc’s broader objective to acquire high-potential mineral assets that can contribute to long-term, sustainable growth. Backed by its extensive in-house mining and exploration expertise, the company is well-prepared to develop and scale these assets efficiently.

This expansion supports Hindustan Zinc’s broader commitment to supplying key metals and minerals essential for the global energy transition, helping build a more sustainable future. A Vedanta Group company, Hindustan Zinc Limited is the world’s largest integrated zinc producer and ranks among the top five global silver producers. With over 77% market share in India’s primary zinc segment and exports to over 40 countries, the company plays a vital role in the global metals supply chain.

Recognized for sustainability leadership, Hindustan Zinc was named the world’s most sustainable metals and mining company for the second consecutive year by the S&P Global Corporate Sustainability Assessment (2024). The company recently introduced EcoZen, Asia’s first low-carbon zinc brand. Produced using renewable energy, EcoZen offers a carbon footprint approximately 75% lower than traditional zinc products.

Hindustan Zinc is also a certified 3.32 times Water Positive company and is actively working toward its goal of Net Zero emissions by 2050 or earlier. Through its community development efforts, it has positively impacted 1.9 million lives, ranking among the Top 10 CSR companies in India. As a global leader in the mining sector, Hindustan Zinc remains committed to providing the critical minerals needed for the world’s energy transition and supporting sustainable industrial development.