Hindustan Zinc emerges preferred bidder for gold mine block, set to expand precious metal portfolio

Hindustan Zinc announced that it has emerged as the preferred bidder for a gold mine block in Rajasthan that will help it expand its precious metal portfolio. The world's second-largest integrated zinc producer secured a composite licence for the block through the state government auctions held on November 13. It has been declared the preferred bidder for the Dugocha Gold Block, as confirmed by the Department of Mines & Geology, Rajasthan.

The block spans 472 hectares and is at the G3 level of exploration, with an estimated 1.74 MT of resources with 1.63g/t gold. “Securing the Dugocha Gold Block is a testament to our prowess in strategic mineral exploration to tap diverse mineral resources to support the nation's rapid economic growth and emerging needs,” said Arun Misra, CEO of Hindustan Zinc Limited.

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“This acquisition enhances our precious metals portfolio and reinforces our ability to deliver long-term value to our shareholders and stakeholders. This will generate unprecedented direct and indirect employment opportunities along with new investments in many industries in the state,” added Misra.

The block is located in Salumber, Rajasthan. The deal aligned with Hindustan Zinc’s long-term strategy of securing high-quality assets with mining potential. Earlier this month, Hindustan Zinc was also declared the preferred bidder for two tungsten and associated metal blocks in Andhra Pradesh and Tamil Nadu. The strategic wins strengthen its position in the critical and precious metals sector, enabling it to produce metals that power the global energy transition.

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Hindustan Zinc, a Vedanta Group company led by Anil Agarwal, is the world's third-largest silver producer. The metals producing major supplies to more than 40 countries and holds a market share of about 75 per cent of the primary zinc market in India. On Thursday, November 14, shares of Hindustan Zinc settled 1.86 per cent higher at ₹494.50 apiece on the BSE.
 

Hindustan Zinc OFS

Earlier this month, the government sold up to 2.5 per cent of its stake in Hindustan Zinc through an offer for sale (OFS) at a floor price of ₹505 per share. The stake sale fetched over ₹5,000 crore at the floor price via the OFS. The two-day subscription of the OFS opened for institutional bidders on Wednesday, November 6, and retail investors on Thursday, November 7, 2024.

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"Offer for sale in Hindustan Zinc Limited opens for retail investors who can bid on Thursday, 7th November. The government will divest 1.25 per cent equity with an additional 1.25 per cent as greenshoe option," said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey in a post on X.