Shares of Vedanta-owned Hindustan Zinc rose 2% to a day high of Rs 504.65 on the BSE today after the firm revealed on Friday that it has emerged as a preferred bidder for the Dugocha Gold and Associated Mineralization Block.

"Via notification dated November 15, 2024, hosted on the mstc ecommerce auction portal, the Company has been declared as 'Preferred Bidder' for Dugocha Gold & Associated Mineralization Block, District Salumber (on highest Final Price Offer of 8.15%)," according to the business's statement.

Earlier in September, the Department of Mines and Geology, Government of Rajasthan, solicited bidders for the grant of a Composite License for the Dugocha Gold & Associated Mineralization Block.

The grant of the composite license in respect of the aforementioned mine will be subject to the payment of the necessary performance bank guarantee, completion of the other terms and conditions of the tender, obtaining necessary approvals from various government departments, and the execution of necessary agreements, the company stated.

"Securing the Dugocha Gold Block demonstrates our expertise in strategic mineral exploration with the goal of capturing diversified mineral resources to serve the country's rapid economic expansion and emerging demands. This acquisition not only strengthens our precious metals portfolio, but it also demonstrates our capacity to provide long-term value to our shareholders and stakeholders. This will generate unprecedented direct and indirect employment opportunities along with new investments in many industries in the state," stated Arun Misra, CEO at Hindustan Zinc.

Earlier this month, Hindustan Zinc was selected as the preferred bidder for two tungsten and related metal blocks in Andhra Pradesh and Tamil Nadu.