HZL eyes rare earth elements, seeks global partners for AI, drone-led mineral exploration

New Delhi: Vedanta group firm Hindustan Zinc Ltd is actively exploring opportunities in rare earth elements and seeking global partners for AI and drone-based exploration of critical minerals, Chairperson Priya Agarwal Hebbar on Monday said.

Addressing the shareholders during the 59th Annual General Meeting, Hebbar said, "Further, we are actively pursuing exploration opportunities in copper, lithium, nickel, cobalt, potash, and rare earth elements, while also looking at neodymium from monazite, antimony, graphite, and germanium." Rare earth elements are essential to modern technology. From smartphones and electric vehicles to wind turbines, defense systems, and advanced electronics, these minerals are the backbone of both civilian and military-industrial capabilities.

"We have already floated international tenders for AI- and drone-led exploration, tapping advanced expertise from partners in Australia, South Africa, Chile, and even China," she explained.

Hebbar further said that the company has evolved from being the country's largest zinc and silver producer to become a multi-metal, future-enabling enterprise.

In a significant step toward strengthening India's mineral security, the government conducted its fifth-tranche auction, which, for the first time, included blocks of potash, tungsten, and rare earth elements.

The company emerged as a successful bidder for these key, critical, and strategic mineral blocks.

Hindustan Zinc Ltd (HZL) secured a rare earth (monazite) block, a land-based, non-radioactive deposit, distinct from the bit-sand monazite currently mined by Indian Rare Earths Ltd.

India is rich in monazite, a key source of neodymium for rare earth magnets. Despite their name, rare earths are not especially rare in nature, but economically viable deposits are limited and often environmentally challenging to extract.

At present, this space is dominated by China, accounting for around 60-70 per cent of global production and an even larger share of the refining and processing capacity.

The Chinese government this year imposed export restrictions on rare earth elements and associated magnets, and later lifted the curb.