Hindustan Zinc secures mining lease for rare earth element block in Karnataka

New Delhi: Vedanta group firm Hindustan Zinc Ltd (HZL) on Thursday said it has bagged a mining lease for a rare earth element block in Karnataka.

The Gundlupet rare earth element (REE) and Yttrium block extends over an area of 314.21 hectares in Chamrajnagar District, Karnataka.

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"Government of Karnataka has issued a Letter of Intent (LoI), pursuant to Rule 10(2) of the Mineral Auction Rules 2015, in favour of Hindustan Zinc Ltd, the preferred bidder for grant of a mining lease for the Gundlupet REE and Yttrium Block over an extent of 314.21 Hectares situated in Mallayanapur village, Gundlupet Taluka, Chamrajnagar District, Karnataka," the company said in a stock exchange filing.

Rare earth elements are essential to modern technology. From smartphones and electric vehicles to wind turbines, defence systems and advanced electronics, these minerals are the backbone of both civilian and military-industrial capabilities.

Hindustan Zinc Chairperson Priya Agarwal Hebbar had earlier said that it is actively exploring opportunities in rare earth elements and seeking global partners for AI- and drone-based exploration of critical minerals.

Addressing the shareholders during the 59th Annual General Meeting, Hebbar had said, "Further, we are actively pursuing exploration opportunities in copper, lithium, nickel, cobalt, potash, and rare earth elements, while also looking at neodymium from monazite, antimony, graphite and germanium."

According to Hebbar, the company has evolved from being the country's largest zinc and silver producer to become a multi-metal, future-enabling enterprise.

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Last year, the company had bagged a potash block in Rajasthan. The company has also received a letter of intent from the Government of Uttar Pradesh for a Rare Earth Elements block.

Hindustan Zinc, the world's largest integrated zinc producer, is among the top 10 silver producers globally. The company supplies to more than 40 countries and holds a 74 per cent market share in the primary zinc market in India.