HZL Targets Rare Earths, Seeks Global AI, Drone Exploration Partners

• Hindustan Zinc Ltd is exploring rare earth elements using AI and drone technology
• The company secured rare earth (monazite) and other strategic mineral blocks in the government auction
• Rare earths are essential for modern technology and defence, with China dominating global production and processing

Hindustan Zinc Ltd (HZL), a Vedanta Group company, is exploring rare earth elements and partnerships outside the country, while incorporating AI and defence categories for critical mineral exploration, Chairperson Priya Agarwal Hebbar said recently.

"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", stated Priya Agarwal Hebbar.

Rare earth elements are critical to modern technology and are components of smartphones, electric vehicles, wind turbines, advanced electronics and defence technology.

Priya added, "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".

Hebbar stated that HZL has transformed from the largest producer of zinc and silver in India to a multi-metal future-oriented company and a significant part of strategic minerals.

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To enhance India's mineral security, the government held its fifth tranche auction recently, which for the first time included blocks of potash, tungsten and rare earth elements. HZL was the successful bidder for blocks of critical minerals and strategic minerals, allowing the company to expand into future-enabling resources through blocks of minerals.

Among the assets, HZL has bought a land based, non-radioactive, rare earth (monazite) block that serves a different monazite operation, that is separate from the bit-sand monazite being mined by Indian Rare Earths Ltd. Monazite in India is a primary source of neodymium, which is essential for rare earth magnets.

Although rare earth elements can be abundant in nature, economically viable deposits are few and are often difficult to extract from the environmentally difficult ground. Currently, China has the market cornered, with between 60–70% of the rare earth elemental production, and probably more of the processing and refining capabilities.

Earlier this year, China placed restrictions on rare earth elements and magnets, though those restrictions have since been lifted, and demonstrated why it is strategically important to develop an ability to produce on the domestic front.