Hindustan Zinc Limited (HZL), a Vedanta Group company, has won the bid for the Balepalyam tungsten block, spanning 308.3 hectares in Ananthapuram district, Andhra Pradesh. The company received a Letter of Intent (LoI) from the Government of Andhra Pradesh, granting it a composite licence under the Mineral Auction Rules, 2015.
Strategic Importance of the Tungsten Block
- Tungsten is classified as a critical mineral, essential for industrial applications, defense, and electronics.
- The Balepalyam block will enhance Hindustan Zinc’s access to strategic minerals, strengthening its diversification beyond zinc and lead.
- The company aims to develop domestic tungsten reserves, reducing India’s dependence on imports.
Financial Performance & Market Reaction
- Hindustan Zinc reported a 47% YoY increase in net profit, reaching ₹3,003 crore in Q4 FY25.
- Revenue surged 20% YoY to ₹9,087 crore, surpassing market expectations.
- The stock closed at ₹443.50, up 1.86%, reflecting investor confidence in the company’s expansion strategy.
Future Outlook & Expansion Plans
Hindustan Zinc is actively exploring potash mining opportunities in Rajasthan and plans to raise ₹500 crore via private placement of NCDs to fund its growth initiatives.
With the Balepalyam tungsten block acquisition, Hindustan Zinc is set to strengthen its position in India’s critical minerals sector, supporting the country’s self-reliance in strategic resources.
For more updates on mining and corporate developments, stay tuned!
