India's Hindustan Zinc Eyes Five Year Timeline To Move Into Rare Earth Metals

Hindustan Zinc, an Indian company, is venturing into rare earth production, but commercial production is expected to take up to five years. The company won a monazite mining block in Uttar Pradesh in a government auction, but exploration and reserve analysis will take three to four years. India holds 6% of global rare earth reserves but accounts for only 1% of production, compared to China's 69%. China's dominance in the sector is due to its large bastnaesite reserves with low thorium content, reducing processing costs. India has 12.73 million metric tons of monazite reserves, but private firms are barred from mining these due to their thorium content, which is reserved for nuclear energy. Hindustan Zinc's CEO, Arun Misra, believes that if monazite is decontrolled and allowed to be mined with private participation, India can increase its magnet production. The global supply of permanent magnets is tight due to China's restrictions on rare earth exports, affecting auto manufacturers. India is reliant on imports of key minerals like cobalt, graphite, lithium, and copper, and the country has launched the National Critical Mineral Mission to secure these resources. Hindustan Zinc is expanding its operations, targeting 30% of its revenue from critical minerals in five years, and has acquired potash and tungsten blocks.