Whalesbook
Major Mineral Block Acquired
Hindustan Zinc, part of the Vedanta Group, has won the Jhandawali–Satipura block in Rajasthan through the Tranche V critical mineral auction. The company's winning bid was 3.05% for the amalgamated potash and halite deposit. This block, spanning over 1,841 hectares, is classified at the G3 exploration level, indicating significant potential. The acquisition aligns with the Ministry of Mines' strategy to boost domestic critical mineral resources.
Future Development and Operational Strength
A composite license deed is expected to be executed, granting Hindustan Zinc the rights to develop the block. This strategic acquisition follows a period of strong operational performance for the company. Hindustan Zinc recently reported its best-ever quarterly and annual mined metal production.
In the fourth quarter ending March 31, mined metal output reached 315 kilotonnes (kt), a 2% year-on-year increase. Refined metal output hit a record 282 kt for the quarter, up 5% year-on-year and sequentially. Refined zinc production rose 6% year-on-year to 227 kt, while refined lead output was 55 kt. Silver production was stable year-on-year, and wind power generation increased sequentially.
Market Performance
On Monday, Hindustan Zinc shares closed at ₹562.00 on the BSE, a modest decrease of 0.37%.