Hindustan Zinc Ltd (HZL) has secured a mining lease for a rare earth element block in Karnataka, according to a stock exchange filing dated September 3, 2026. The company announced it has received a Letter of Intent (LoI) from the Government of Karnataka for the Gundlupet rare earth element (REE) and Yttrium block, which spans 314.21 hectares in Mallayanapur village, Gundlupet Taluka, Chamrajnagar District, Karnataka. The lease was awarded pursuant to Rule 10(2) of the Mineral Auction Rules 2015, making HZL the preferred bidder for this strategic mineral block.
Rare earth elements are critical components of modern technology infrastructure, as reported by The Hindu BusinessLine. These minerals are essential for smartphones, electric vehicles, wind turbines, defence systems, and advanced electronics, serving as the backbone of both civilian and military-industrial capabilities. The acquisition of this Karnataka block represents HZL's strategic expansion into critical mineral exploration beyond its traditional zinc and silver operations.
According to company Chairperson Priya Agarwal Hebbar, as reported by The Hindu BusinessLine, HZL is actively exploring opportunities in rare earth elements and seeking global partners for AI- and drone-based exploration of critical minerals. During the 59th Annual General Meeting, Hebbar outlined the company's diversification strategy, stating they are actively pursuing exploration opportunities in copper, lithium, nickel, cobalt, potash, and rare earth elements, while also exploring neodymium from monazite, antimony, graphite and germanium. The company has evolved from being the country's largest zinc and silver producer to become a multi-metal, future-enabling enterprise.
This latest acquisition follows HZL's strategic expansion into other critical minerals, as reported by The Hindu BusinessLine. The company previously secured a potash block in Rajasthan and has received a letter of intent from the Government of Uttar Pradesh for a Rare Earth Elements block. HZL, the world's largest integrated zinc producer, ranks among the top 10 silver producers globally and supplies to more than 40 countries, holding a 74 per cent market share in the primary zinc market in India.
Hindustan Zinc shares closed 0.08% lower at ₹587.95 per unit on the National Stock Exchange (NSE) on Thursday, September 3, 2026, according to latest market data. The announcement was made after market hours, which may have contributed to the muted response. The stock has declined 4% in the past week but gained more than 7% over the month. On a year-to-date basis, it has lost 4%. The company maintains a total market capitalisation of ₹2.48 lakh crore as of September 3, 2026, according to NSE data. While the scrip hit a 52-week high of ₹733 per equity share on January 27, 2026, it touched a year's low of ₹430.75 apiece on September 10, 2025.
