“Anything which is deep down into the earth, appearance is low, has a complexity and is difficult to extract, that’s the entry barrier we can provide to others,” Misra said in an interview. “We have the technology experience; others do not have”.
Gold, platinum, lithium and graphite fit these criteria, he said.
The country’s largest producer of zinc, lead and silver, though, will be open to all critical minerals. Earlier this year, it created a subsidiary Hindmetal Exploration Services for the exploration of these minerals. “Frankly speaking, I will not look for synergies in critical minerals. I will look at it as another mineral added to the basket,” he said.
Hindustan Zinc is controlled by natural resources major Vedanta, whose chairman Anil Agarwal has been quite vocal about local manufacturing to cut dependence on imports.
“India is import dependent for these (critical) minerals, just like it is for oil. We must not repeat history. We must produce in India,” he said in a post on social media platform X earlier this week.
In the Union budget, the government proposed exempting customs duty on 25 critical minerals, while removing the basic customs duty on ferro nickel and blister copper.
The government, which continues to own nearly a third of the company, though, is looking to partially divest its stake through an offer-for-sale (OFS) before the demerger. Hindustan Zinc is in talks with the government on the demerger process.
Asked whether Hindustan Zinc promoters would consider raising their stake by purchasing the government’s holding, Misra said promoters are always interested in the company’s shares. “Absolutely no two opinions about that. But just because they wish to, it does not mean they will be able to do it because there are various restrictions,” he said. “The OFS is not a preferential allotment to the owner; it is for the market.”
Within the prescribed limit, promoters can either look at a creeping acquisition or buy shares from the open market if offered by the government, he said.
Vedanta held a 64.92% stake in Hindustan Zinc as of June-end, while the government held a 29.54% stake.
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