Vedanta's Hindustan Zinc, 4 others to compete for two gold mines in Rajasthan

Vedanta subsidiary Hindustan Zinc is one of the ‘technically qualified bidders’ for gold and associated mineral blocks put up for auction by the Government of Rajasthan. A notice dated May 13, 2024, issued by the Directorate of Mines & Geology, Government of Rajasthan, stated that the company has been declared as one of the 'Technically Qualified Bidder' for the blocks - Bhukia-Jagpura and Kankriya Gara Block.

Besides Hindustan Zinc, Ramgad Minerals and Mining Ltd, Hirakund Natural Resources Ltd, Jindal Power, Saiyyed Owais Ali have emerged as technically qualified bidders for Bhukia-Jagpura gold block in the desert state.

For Kankriya Gara gold block, the technically qualified bidders are Hirakund Natural Resources, Poddar Diamond, Owais Metal and Minerals Processing, Hindustan Zinc and JK Cement, according to the website of Department of Mines and Geology (DMG) of the Rajasthan government.

The auction process started in March of this year. According to the website, the auction of both the gold blocks will be held this week.

The full-scale production of the country’s first large private gold mine in Andhra Pradesh will begin by the end of 2024, Deccan Gold Mines Managing Director Hanuma Prasad had earlier said.

The Jonnagiri gold project, in which the pilot-scale operation has already started, will produce about 750 kilograms of gold per year once it begins its full-scale production.

The mine, in which an investment of Rs 200 crore has been made so far, is producing about one kg of gold per month at present.

For Q4 FY24, Hindustan Zinc reported a 21% drop in consolidated net profit to Rs 2,038 crore versus profit after tax (PAT) of Rs 2,583 crore recorded in the corresponding quarter of the last financial year. The revenue from operations stood at Rs 7,285 crore in the reported quarter, down 12% from Rs 8,281 crore reported in the year-ago period.

Vedanta Ltd reported a 27 per cent decline in fiscal fourth-quarter profit, driven by surging finance costs and weak prices of metals such as zinc, copper, and aluminium. Net profit fell to Rs 1,369 crore for the quarter ended March 31 from Rs 1,881 crore in the year earlier. It reported a Rs 2,013 crore profit in the preceding December quarter.