Hindustan Zinc Gets LoI for Mining Block in UP

Udaipur, July 4, 2025 – Hindustan Zinc Ltd (NSE: HINDZINC, BSE: 500188) has received a Letter of Intent (LoI) from the Government of Uttar Pradesh for the grant of a Composite License over the Nawatola-Laband Rare Earth Element (REE) block in Sonbhadra district, spanning 210.01 hectares.

This development marks a strategic move for Hindustan Zinc, enhancing its diversification into critical minerals and strengthening its long-term positioning in the rare earths segment, which is vital for clean energy and technology sectors.

The stock closed at ₹444.50, down 0.24% for the day on July 4.

Key Details

The LoI was issued under Rule 18(1) of the Mineral Auction Rules, 2015, designating Hindustan Zinc as the preferred bidder in the e-auction conducted by the Ministry of Mines, Government of India.

Regulatory Background

The Composite License allows the holder to carry out both prospecting and mining operations once all clearances are obtained. The issuance of this LoI is in line with India’s strategy to promote domestic exploration and reduce import dependency in rare earths.

Outlook

The acquisition enhances Hindustan Zinc’s footprint in India’s critical minerals space, especially within the rare earth ecosystem vital to defence, electronics, and clean energy. The mild stock decline indicates investors are likely awaiting regulatory clarity and execution progress before re-rating the stock.

About the Company

Hindustan Zinc Limited, a Vedanta Group company, is India’s largest and world’s second-largest integrated zinc producer. Listed on NSE and BSE, it operates fully integrated mining and smelting operations and is diversifying into key strategic minerals aligned with India’s critical resource needs.

This LoI marks a significant step forward in Hindustan Zinc’s efforts to expand its footprint beyond conventional base metals into the fast-growing rare earths segment.

REF: https://nsearchives.nseindia.com/corporate/HINDZINCNSE_04072025145012_SEIntimation-LOI.pdf

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