Hindustan Zinc Limited (HZL), a key player in the mining sector and a subsidiary of the Vedanta Group, has emerged as the preferred bidder for the Dugocha Gold Block in Rajasthan. The announcement came following state government auctions held on November 13, marking a strategic milestone in HZL’s expansion into precious metals.

The Dugocha Gold Block, located in Salumbar, Rajasthan, spans 472 hectares and represents a promising opportunity for Hindustan Zinc to diversify its resource base. With an estimated 1.74 million tonnes (MT) of resources grading 1.63 grams per tonne (g/t) of gold, the block is classified as being at the G3 level of exploration.

CEO’s Vision for Growth

HZL CEO Arun Misra hailed the acquisition as a significant step toward bolstering India’s mineral resource capabilities. Speaking on the development, Misra said:

“Securing the Dugocha Gold Block is a testament to our prowess in strategic mineral exploration. It enhances our precious metals portfolio while generating unprecedented direct and indirect employment opportunities in Rajasthan.”

He emphasized the broader economic impact, highlighting the potential for new investments across industries and value creation for shareholders and stakeholders.

Strategic Expansion of Precious Metals Portfolio

Hindustan Zinc’s entry into gold mining is part of a broader strategy to diversify its mineral portfolio. Already a leader in zinc and silver production, this acquisition allows HZL to strengthen its presence in precious metals, aligning with the nation’s growing resource needs.

In addition to the Dugocha Gold Block, Hindustan Zinc was recently declared the preferred bidder for two tungsten and associated metal blocks in Andhra Pradesh and Tamil Nadu. These wins further underscore the company’s focus on leveraging India’s untapped mineral resources to drive economic growth.

Economic and Employment Opportunities

The acquisition is expected to generate significant employment opportunities in Rajasthan, both directly and indirectly. It also sets the stage for increased investment in related industries, such as equipment manufacturing and infrastructure development.

The Dugocha project aligns with Hindustan Zinc’s commitment to creating long-term value. With strategic initiatives aimed at resource diversification and sustainability, the company is poised to play a pivotal role in India’s mining sector.

About Hindustan Zinc

Hindustan Zinc, a Vedanta Group company, is the world’s second-largest integrated zinc producer and the third-largest silver producer. With this new acquisition, the company continues to assert its dominance in the mining industry while expanding its footprint into gold and tungsten exploration.

Future Outlook

With the Dugocha Gold Block acquisition and recent wins in tungsten blocks, Hindustan Zinc is well-positioned to support India’s rapid economic growth and emerging industrial needs. This development further solidifies the company’s role as a leader in the mining and precious metals sector.

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