Hindustan Zinc (HZL) which secured a potash block in Hanumangarh, Rajasthan, through Tranche V of the Centre’s e-auction process held in May 2025, has received a letter of intent (LoI) from Ministry of Mines for the 1,800-hectare block, making it one of the first potash blocks awarded in India.

This marks HZL’s third acquisition in the critical minerals segment in 2025. Earlier, the company received an LoI from the Uttar Pradesh government for a Rare Earth Elements (REE) block, and previously secured a Tungsten and Associated Minerals block in Andhra Pradesh. 

Potash is essential for NPK fertiliser production, and India currently imports all its potash requirements from countries such as Canada, Belarus, Jordan, and South Korea. The Centre’s first auction of potash and halite blocks aims to reduce import dependency and bolster domestic agricultural inputs.