Hindustan Zinc, India’s leading refined zinc producer, is poised to venture into uranium mining, awaiting government approval to open the sector to private companies, according to CEO Arun Misra.
India intends to open its nuclear sector to private companies, allowing them to mine, import, and process uranium.
This move aims to dismantle a long-standing state monopoly and attract significant investment.
“If new uranium blocks are put out for private companies, Hindustan Zinc will be the first to bid,” Misra told Reuters in an interview.
We will get into atomic minerals and especially uranium because the country needs it.
Strategic move
India, under Prime Minister Narendra Modi’s leadership, aims for a significant increase in its nuclear power capacity, targeting a 12-fold expansion by 2047.
This ambitious plan underscores the nation’s commitment to clean energy and energy security.
Historically, India has maintained stringent control over its nuclear sector.
This tight oversight is primarily driven by critical concerns regarding safety protocols, ensuring strategic security, and preventing the potential misuse of nuclear materials.
The expansion will likely involve both indigenous reactor development and international collaborations, navigating these crucial considerations to meet the growing energy demands.
Hindustan Zinc is actively expanding its operational scope beyond traditional zinc mining.
A significant new venture for the company involves the exploration and extraction of rare earth minerals within India.
This strategic diversification was initiated earlier this year when Hindustan Zinc successfully secured its inaugural rare earth mineral block in the northern state of Uttar Pradesh.
This development marks a pivotal step in India’s efforts to bolster its domestic supply chain for critical minerals, reducing reliance on foreign imports for technologies vital to renewable energy, electronics, and defense.
The acquisition of this block in Uttar Pradesh positions Hindustan Zinc as a key player in the nascent Indian rare earth industry, with plans to leverage its extensive mining expertise to develop these valuable resources.
Global tenders and China partnership
Misra announced that global tenders have been issued for companies to explore the block’s potential.
The company anticipates beginning neodymium extraction within five to six years, a rare earth element crucial for magnets in motors and generators.
Hindustan Zinc is looking to mine critical minerals such as lithium, antimony, germanium, copper, and graphite. To assist with exploration, the company is seeking support from firms in Australia, South Africa, Peru, Chile, and China.
In April, China halted exports of various rare earths and associated magnets, disrupting crucial supply chains for the automotive, aerospace, and semiconductor industries.
This move is significant given China’s dominant position in global rare earth mining.
On Tuesday, a high-ranking Indian official and a separate source confirmed to Reuters that Beijing has committed to fulfilling New Delhi’s rare earth requirements.
This development comes as India and China work to restore relations that were strained by a border conflict in 2020.
Hindustan Zinc plans to double its zinc production capacity to 2 million metric tons by 2029, as stated by Misra, as it focuses on expanding its traditional zinc business.
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