Hindustan Zinc received gold mining license for Dugocha, Rajasthan; aims to expand its precious metal portfolio – Sectoral News

Hindustan Zinc, a vedanta group company, has acquired composite license for gold mining block of Dugocha gold block in Rajasthan. The acquisition was made through auctions held by the state government on November 13, 2024. Hindustan Zinc is a major global player as an integrated zinc producer and the third largest producer of silver.

Dugocha Gold block and long term strategy

Dugocha Gold block supply in Rajasthan follows a similar trend Hindustan Zinc‘s long-term strategy to secure high-quality assets with strong mining potential. The mining block is located in Salumber, Rajasthan and covers an area of ​​472 hectares, is currently being explored at G3 level and has an estimated resource of 1.74 million tonnes and 1.63 g/t gold.

Arun Misra, CEO, Hindustan Zinc Limited, said: “This acquisition not only enhances our precious metals portfolio but also strengthens our ability to deliver long-term value to our shareholders and shareholders. This will enable unprecedented direct and indirect investment as well as new investments across multiple sectors in the state.” It will create employment opportunities.”

He also spoke about the company’s outstanding capabilities in strategic mineral exploration, with a vision to tap diverse mineral resources to meet the emerging needs of nations and drive economic growth.

Previous fund raise

government India It raised Rs 3.449 billion by selling 1.6 per cent stake in Hindustan Zinc Ltd through offer for sale (OFS). During the two-day OFS on November 6-7, the government initially aimed to sell over 5.28 crore shares or 1.25 per cent of its shares with a green shoe option to retain additional subscriptions of a similar amount.

On November 6, the first day of the share sale, institutional investors bid for shares worth approximately Rs 3,400 billion, representing approximately 1.58 percent of the shares. However, demand from retail investors was relatively weak on November 7.

Earlier this month, Hindustan Zinc was named the preferred bidder for two tungsten and related metal blocks in Andhra Pradesh and Tamil Nadu. These strategic acquisitions strengthen the company’s position in the critical and precious metals sector and support its vision of producing metals that drive the global energy transition.

\