Hindustan Zinc secures preferred bidder status for Dugocha gold block in Rajasthan

Hindustan Zinc Limited has emerged as the preferred bidder for the coveted Dugocha Gold and Associated Mineralization Block in Rajasthan. The Department of Mines & Geology, Government of Rajasthan, confirmed the company’s win following a competitive e-auction process on November 13, 2024. This strategic acquisition is expected to significantly bolster Hindustan Zinc’s position in the precious metals sector.

Located in Salumber, Rajasthan, the Dugocha block spans 472 hectares and is categorized as a G3-level exploration site, with estimated resources of 1.74 million tonnes containing gold at 1.63 grams per tonne. The move underscores Hindustan Zinc’s commitment to securing high-potential mining assets and aligns with its long-term vision of diversifying its portfolio.

The company highlighted that the next steps involve fulfilling necessary conditions, including submitting a performance bank guarantee and obtaining various regulatory approvals. Once formalities are completed, this acquisition will likely create a ripple effect, driving employment and industrial growth in Rajasthan.

A strategic leap for Hindustan Zinc

Arun Misra, CEO of Hindustan Zinc, described the acquisition as a transformative step in the company’s growth journey. He emphasized that this marks Hindustan Zinc’s foray into gold mining, further solidifying its status as a leader in precious metals. Misra noted that the acquisition would enable the company to deliver long-term value to shareholders while contributing to India’s economic growth and energy transition goals.

The addition of the Dugocha block complements Hindustan Zinc’s recent wins in the tungsten and associated metal blocks in Andhra Pradesh and Tamil Nadu. Together, these acquisitions showcase the company’s strategic focus on expanding its critical and precious metals portfolio.

Commitment to sustainability and innovation

Hindustan Zinc is no stranger to accolades, having been recognized as the most sustainable company in the metals and mining category by the S&P Global Corporate Sustainability Assessment 2023. The company’s flagship green initiative, EcoZen, continues to set benchmarks in low-carbon zinc production, boasting a carbon footprint 75% lower than the global average.

As a Vedanta Group company, Hindustan Zinc is playing a pivotal role in the global energy transition. Its commitment to achieving net-zero emissions by 2050 is complemented by its contributions to local communities and its water-positive operations.

Expert insights on the Dugocha block win

Mining industry analysts regard Hindustan Zinc’s acquisition of the Dugocha block as a calculated move to secure high-quality resources. They believe the company’s in-house expertise and robust exploration capabilities will enable it to unlock the potential of the block efficiently. The addition of gold mining to its operations diversifies the company’s revenue streams, making it resilient to market fluctuations in zinc and silver prices.