Critical minerals push: Can metal producers help secure domestic supply chains? Hindustan Zinc's Priya Agarwal Hebbar weighs in

India's efforts to secure reliable supplies of critical minerals could create new opportunities for established metals producers, as demand rises from clean energy, infrastructure, advanced manufacturing and emerging technologies. Hindustan Zinc is looking to broaden its role in this evolving resource landscape, with Chairperson Priya Agarwal Hebbar highlighting the strategic importance of domestic mineral supply chains in her letter to shareholders for the second quarter of FY27.

“Metals and critical minerals will be the building blocks of the next era of industrial expansion, clean energy, advanced manufacturing, and technological leadership,” Hebbar said in the letter to shareholders for Q2 FY27. She emphasised the need for secure and reliable supply chains as India advances its industrial and development ambitions.

During the September quarter, Hindustan Zinc secured the Letter of Intent for the Gundlupet Rare Earth Elements and Yttrium Block in Karnataka. The development marks an early step in the company's efforts to expand its presence in critical minerals beyond its established zinc, lead and silver operations.

“While still at an early stage, it marks an important step in strengthening our presence in critical minerals and broadening Hindustan Zinc's contribution to India's resource future,” Hebbar said.

Critical minerals gain importance

The development comes as critical minerals gain importance in India's plans for clean energy expansion, technological development and advanced manufacturing. Building reliable domestic supply chains, however, involves more than identifying mineral resources. Exploration, assessment of commercially recoverable reserves, processing capabilities and the investments required to develop mining projects will determine how quickly resource potential can translate into actual production.

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For established metals companies, entering new mineral categories could offer an opportunity to broaden their businesses and participate in emerging areas of industrial demand. However, the extent of that opportunity depends on the characteristics of individual deposits, the feasibility of extraction and processing, and the time and capital needed to develop projects.

Hindustan Zinc's existing operations

Hindustan Zinc's existing operations provide the company with an established mining and refining base. Hebbar said investments in new capacities, operational improvements and technology had begun translating into stronger operating performance during the first half of FY27.

The company reported mined metal production of 271 kilotonnes in the September quarter, up 5% year-on-year, while refined metal production increased 7% to 264 kilotonnes. Silver production rose 20% to 173 tonnes. Hebbar also highlighted the company's integrated mine-to-metal model as a competitive advantage supporting productivity, operational resilience and value creation.

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Tech intervention

Technology is another part of the company's approach. Hindustan Zinc is deploying tele-remote mining, automation, artificial intelligence-led process optimisation and predictive maintenance to improve safety, reliability and productivity across its operations.

These capabilities could support operational efficiency as the company pursues new opportunities, although the shareholder letter does not specify the investment, development timeline or expected production from the Gundlupet block.

Looking ahead, Hebbar said the company's priorities included sustaining operational momentum, executing growth projects with discipline, improving productivity and strengthening its presence in critical minerals.

For India's broader critical-minerals ambitions, the challenge will be to turn exploration opportunities into commercially viable domestic supply. Hindustan Zinc's latest move signals its interest in participating in that effort, but the contribution of the Gundlupet block will depend on the progress of its development.

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