Hindustan Zinc Ltd plans to add at least three new metals to its portfolio over the next five years as it seeks to transform from a zinc-focused miner into a diversified critical minerals company, chief executive Arun Misra said at its 60th annual general meeting on Monday.
The Vedanta Group company, India’s largest producer of zinc and silver, said its long-term strategy is to diversify beyond its existing portfolio of zinc, lead, silver and cadmium by entering businesses such as rare earths, potash and tungsten.
“In our strategic vision, in the next five years we must add about three more new metals to our portfolio,” Misra told shareholders, adding that the company could also pursue opportunities in copper or gold if suitable become available.
This was Misra’s last AGM as the company’s CEO. He is set to become group CEO of Vedanta Ltd within the next two months, Mint on 15 June. Amarendu Prakash, former chairman and managing director of Steel Authority of India, has been named the company’s CEO-designate.
Diversification bid
Hindustan Zinc’s aggressive participation in auctions conducted under the Centre’s Critical Mineral Mission reflects its diversification push. The CEO said it has already secured mineral blocks for tungsten, potash and rare-earth elements, aligning with its objective of building a presence in minerals considered critical for the country’s industrial and energy transition.
Management highlighted the strategic importance of each mineral. “If we successfully prove the existence of Potash in the block we have got in Rajasthan, we will be the first ones to mine potash, and since we are going into the fertilizer business, for us it is a perfect synergy. Tungsten is a metal highly required by the industry, and we will be the first one to mine in India,” Misra said.
The company also sees significant potential in the rare-earth block it won in Uttar Pradesh. According to Misra, the block could produce neodymium, a key material used in permanent magnets required for electric vehicles and other clean-energy technologies.
It also intends to participate in government magnet manufacturing auctions, enabling it to move further up the value chain.
“ will also participate in the government’s auction for producing magnets in India because that is the future,” Misra told shareholders.
Expansion programme
Together, these investments aim to position Hindustan Zinc as a key supplier of critical minerals for sectors including electric mobility, renewable energy, defence, and advanced manufacturing.
Hindustan Zinc has secured critical mineral blocks, including a tungsten block in Balepalyam (Andhra Pradesh), a rare-earth elements (REE) block in Nawatola, Laband (Uttar Pradesh), and a block in Jhandawali, Satipura (Rajasthan), according to its annual report.
The diversification comes alongside its ₹40,000-45,000 crore expansion programme to double annual metal production to 2 million tonnes, Misra said, adding that the company has the financial strength to fund both capacity expansion and entry into new minerals while maintaining shareholder returns.
During the AGM, shareholders questioned management about the benefits of its rare-earth diversification and the key growth drivers for the next five years, and urged the company to consider issuing bonus shares to mark its 60th AGM.
Hindustan Zinc reported a nearly 20% rise in revenue from operations to ₹40,844 crore in FY26, while profit rose 34% to ₹13,832 crore. Vedanta Ltd owns a controlling 60.71% stake in Hindustan Zinc, while the Centre holds 27.92%, and public shareholders account for the remaining 11.37%.