Hindustan Zinc, a vedanta group company, has acquired a composite license for a gold mining block in the Dugocha gold block in Rajasthan. The acquisition took place through the auctions organized by the state government on November 13, 2024. Hindustan Zinc is a major global player as an integrated zinc producer and the third largest producer of silver.

Dugocha Gold block and long term strategy

The Dugocha Gold block acquisition in Rajasthan is on a similar trend to Hindustan Zincits long-term strategy to secure high-quality assets with strong mining potential. The mining block is located in Salumber, Rajasthan and spans 472 hectares, currently at the G3 exploration level, with an estimated resource value of 1.74 Mt at 1.63 g/t gold.

Arun Misra, CEO, Hindustan Zinc Limited, said, “This acquisition not only enhances our precious metals portfolio but also strengthens 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.”

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He also noted the company’s exceptional skills in strategic mineral exploration with a vision to tap into diverse mineral resources to meet the emerging needs of nations and support economic growth.

Previous fundraising

The government of India raised Rs 3,449 crore by selling a 1.6% stake in Hindustan Zinc Ltd through an offer for sale (OFS). During the two-day SFO on November 6-7, the government initially proposed to sell over 5.28 million shares, or 1.25 percent of its stake, with a greenshoe option to retain additional subscriptions of a similar amount.

On November 6, the first day of the share sale, institutional investors submitted offers for shares worth almost 3,400 million lei, representing approximately 1.58% of the shareholding. However, demand from retail investors was relatively weak on 7 November.

Earlier this month, Hindustan Zinc was named the preferred bidder for two tungsten and associated metal blocks in Andhra Pradesh and Tamil Nadu. These strategic wins enhance the company’s position in the critical and precious metals sector, supporting its vision to produce metals that lead the global energy transition.

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