Hindustan Zinc Secures Tungsten Mining Licence in Andhra Pradesh

Hindustan Zinc Expands into Tungsten Mining in Andhra Pradesh

Hindustan Zinc has secured a tungsten mining licence in Andhra Pradesh, marking a key step in its critical minerals strategy. The licence covers the Balepalyam block in Kanaganapalle, Sri Satya Sai district, spanning 308.30 hectares. Currently, the block is at the G3 exploration stage, according to official tender documents.

The composite licence allows Hindustan Zinc to explore and mine tungsten if exploration proves successful. Earlier this year, the company became the preferred bidder through a competitive auction conducted by India’s central government. This move positions Hindustan Zinc to diversify beyond its core zinc, lead, and silver operations.

Hindustan Zinc CEO Arun Misra highlighted that this milestone strengthens the company’s mineral portfolio and supports India’s self-reliance in strategic minerals. The company, part of the Vedanta Group, already commands around 77% of India’s primary zinc market and supplies products to over 40 countries globally.

Strategic Implications of Hindustan Zinc’s Tungsten Licence

Securing the Balepalyam block enhances Hindustan Zinc’s footprint in the critical minerals sector. Tungsten is vital for high-strength alloys, electronics, and defense applications, making this acquisition strategically important. As global demand for critical minerals grows, Hindustan Zinc’s entry into tungsten mining positions it as a competitive player in the international metals market.

Meanwhile, the licence deed allows the company to carry out comprehensive exploration before full-scale mining. This approach mitigates risks while enabling long-term planning for production and export. Industry analysts note that India aims to increase domestic tungsten output to reduce dependence on imports, aligning with Hindustan Zinc’s expansion strategy.

SuperMetalPrice Commentary:

Hindustan Zinc’s move into tungsten demonstrates its foresight in diversifying beyond traditional base metals. As global critical mineral demand surges, the company could leverage its scale, experience, and Vedanta Group backing to secure long-term contracts. Investors and industry stakeholders should watch the Balepalyam block’s development closely, as it may set a benchmark for India’s emerging critical minerals sector.