Hindustan Zinc Ventures into Potash Mining; Explores Lithium Prospects in Rajasthan

Hindustan Zinc Limited (HZL), a subsidiary of the Vedanta Group, has unveiled ambitious plans to expand its operations beyond its traditional base metals business by venturing into potash mining. The company has identified a mineral-rich block in Rajasthan that not only holds significant potash potential but may also contain lithium deposits—an increasingly critical resource for electric vehicle batteries and energy storage technologies.

Strategic Expansion into Critical Minerals

Historically focused on zinc, lead, and silver production, Hindustan Zinc is now actively broadening its mineral portfolio to include strategic and critical minerals. This move aligns with the Indian government’s broader push to reduce dependency on mineral imports and build resilient domestic supply chains for essential resources.

Arun Misra, CEO of Hindustan Zinc, commented that the company is ready to “expand into all critical minerals, whichever is of strategic interest to us, including potash.” He also added that the identified block in Rajasthan not only contains potash but also shows geological signs that suggest the presence of lithium—a potential game-changer for India’s ambitions in battery manufacturing.

National Importance of Potash and Lithium

India is heavily dependent on imports for potash, primarily sourcing the vital fertilizer component from countries like Russia, Canada, Belarus, and Israel. The development of domestic potash reserves by a major company like Hindustan Zinc could significantly reduce this reliance.

Lithium, meanwhile, has taken center stage as one of the most valuable resources in the global shift toward clean energy. If confirmed, lithium reserves in Rajasthan would position India as a key player in the battery and electric vehicle supply chain.

Broader Exploration and Acquisitions

In addition to this potash-lithium initiative, Hindustan Zinc has recently made strategic acquisitions to expand its mining footprint. The company was declared the preferred bidder for the Dugocha gold block in Rajasthan, marking its entry into the precious metals sector.

Furthermore, HZL secured the Balepalyam Tungsten Block in Andhra Pradesh, bolstering its critical mineral assets. Its exploration arm, Hindmetal Exploration Services Pvt Ltd, continues to actively participate in state-led auctions, targeting high-value minerals with a strategic focus.

The company’s expansion is underpinned by robust financial results. For the quarter ending March 2025, Hindustan Zinc posted a 47.3% year-on-year increase in consolidated net profit, reaching ₹3,003 crore. This performance was attributed to record metal production volumes and effective cost controls, providing a strong financial foundation for future investments.