Hindustan Zinc Ltd. has incorporated a new subsidiary to explore, discover, develop and tap critical mineral resources as India embarks on a major push to hunt for new deposits and reduce import dependence.
Hindmetal Exploration Services Pvt., the wholly-owned subsidiary, has been incorporated in Rajasthan with an authorised share capital of Rs 1 lakh, according to an exchange filing on Tuesday.
The unit will be in business to explore, discover, develop and tap all types of mineral resources, including strategic minerals, deep-seated minerals and offshore minerals. It will also participate in the auctioning of mining blocks containing critical minerals, the company said.
Deep-seated minerals are those located deep within the earth's crust and are more difficult to extract. Gold, copper and diamonds are some such minerals.
Vedanta Ltd., owned by Hindustan Zinc, currently mines zinc and silver.
The Indian government has announced incentives for companies to explore and develop critical minerals like lithium and cobalt that are crucial for electric vehicle manufacturing and other green-focused industries.
In November, the government launched the first tranche of the e-auction of 20 mines of critical and strategic minerals worth Rs 45,000 crore. The blocks include copper, lithium, nickel and potash.
Critical minerals are becoming increasingly important due to their application in many sectors, including high-tech electronics, telecommunications, transport, and defence. They are also vital for the global transition to a low-carbon economy.
The Ministry of Mines has identified a list of 30 critical minerals for the country. These include lithium, niobium, titanium, copper and rare earth elements, among others.
The rules for exploration of offshore mineral blocks will be finalised soon and then auctions of such blocks will start, the government has said.
India is 100% import-dependent for the majority of the identified strategic minerals. And China is among the top five import sources for India for several of these minerals.
Shares of Hindustan Zinc Ltd. closed 0.34% lower at Rs 309.40 apiece ahead of the announcement, compared to a 0.42% rise in the benchmark BSE Sensex.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
