Hindustan Zinc Gets Licence to Explore, Mine Tungsten Block in Andhra Pradesh
Hindustan Zinc Ltd (HZL), a Vedanta Group company, announced on Saturday, November 15, 2025, that it has received the formal license from the Andhra Pradesh state government to explore and mine a tungsten and associated mineral block.
This development is considered a significant milestone for HZL as it marks a strategic move by the company to diversify its mineral portfolio beyond its traditional core businesses of zinc, lead, and silver, and venture into critical and high-value minerals essential for advanced manufacturing.
Key Details of the Acquisition
Type of Licence: The company has been granted a Composite Licence by the Andhra Pradesh government.
Composite Licence Definition: A composite licence is a single, two-stage concession that grants the holder both the right to explore for the mineral and, upon successful establishment of commercial viability, the right to mine the deposit.
Block Location: The tungsten and associated mineral block is located in the Balepalyam village of Kanaganapalle mandal in the Sri Satya Sai district of Andhra Pradesh.
Area: The block spans an extent of 308.3 hectares.
Bidding Process: HZL was previously declared the preferred bidder for the block through a competitive auction process conducted by the Centre earlier in the year. The receipt of the formal composite licence marks the culmination of this process.
Strategic Importance of Tungsten
Tungsten is a strategic mineral due to its unique properties (high melting point, extreme hardness) and its crucial role in several high-tech and industrial applications. It is classified as a critical mineral essential for:
Aerospace and Defence
Electronics
Advanced Manufacturing
India currently relies heavily on imports for this valuable resource, making HZL's move a key step toward the nation's goal of self-reliance in critical and strategic minerals.
Company's Statement
Commenting on the development, Arun Misra, CEO of Hindustan Zinc, said:
“This milestone marks another step forward in Hindustan Zinc’s journey of expanding its mineral footprint and contributing to the nation’s self-reliance in critical and strategic minerals. As we progress on this path, Hindustan Zinc will continue to explore and develop the metals and minerals that India needs to become truly self-sufficient and future-ready.”
HZL's Existing Dominance
Hindustan Zinc is currently the world's largest integrated zinc producer and is among the top five silver producers globally. The company supplies to over 40 countries and holds a market share of approximately 77 per cent of the primary zinc market in India. The tungsten block acquisition is a key element in its long-term strategy to build a multi-metal portfolio and strengthen its mineral resource base.