Vedanta Group plans potash mining venture, eyes Rajasthan block with potential lithium reserves

Hindustan Zinc Ltd (HZL), a Vedanta Group company, is set to foray into potash mining and is targeting a block in Rajasthan that has a strong possibility of containing lithium reserves as well. India heavily relies on potash imports from countries such as Russia, Canada, Belarus, and Israel, and HZL's move aims to reduce this dependency.

The company is also looking to expand beyond its core focus on base metals—zinc, lead, and precious metals like silver—into other critical minerals that are of strategic interest. Hindustan Zinc was recently declared the preferred bidder for the Dugocha gold block in Rajasthan, expanding its portfolio of precious metals.

"So all the critical mineral blocks, as I said, we have got gold...block, we have got tungsten block. So Hindustan Zinc will expand beyond zinc, lead and silver," said Hindustan Zinc CEO Arun Misra. "We will expand into all critical minerals, whichever is of strategic interest to us, including not only minerals, including potash... Potash is there in Rajasthan... (There are) also chances of lithium association there (in the potash block). So we will look at that," he added.

Hindustan Zinc also secured the Balepalyam Tungsten Block in Andhra Pradesh and is actively participating in the auction of all mineral blocks across India. Misra expressed confidence in the company's future, stating, "I am sure they (the company) will turn out to be the biggest private explorer as far as India is concerned."

HZL’s subsidiary, Hindmetal Exploration Services Pvt Ltd, is focused on strategic mineral exploration, particularly in critical minerals, and is working diligently to fulfill this vision.

Hindustan Zinc recently reported a 47.3% increase in its consolidated net profit, reaching Rs 3,003 crore for the quarter ended March 2025, driven by record metal volumes and lower production costs. In comparison, the company had posted a net profit of Rs 2,038 crore in the same period the previous year.

As the world’s largest integrated zinc producer and among the top five silver producers globally, Hindustan Zinc continues to lead in the primary zinc market in India, holding about 77% of the market share and supplying to more than 40 countries.