Vedanta shares in focus amid critical mineral exploration, expansion plans

Vedanta shares are expected to be in focus on Tuesday, May 13, as the company is exploring critical mineral assets across key Indian states, including Maharashtra, Rajasthan, Bihar, Arunachal Pradesh, Karnataka, and Chhattisgarh.

The company announced its strategic focus on expanding its mineral footprint, targeting essential resources such as copper, nickel, cobalt, chromium, vanadium, tungsten, and Platinum Grade Elements (PGEs).

This initiative is aligned with India's policy thrust on mineral security, aiming to bolster the supply of critical minerals for rapidly growing sectors such as electric vehicles and renewable energy.

Vedanta secured four blocks in the fourth round of the critical mineral blocks auction, with acquisitions including vanadium and graphite in Arunachal Pradesh, a polymetallic mine in Karnataka, and tungsten-related assets in Andhra Pradesh and Tamil Nadu.

Additionally, Vedanta’s subsidiary, Hindustan Zinc Ltd. (HZL), won a tungsten and associated minerals block in Andhra Pradesh.

The company is also expanding its aluminium capacity with a $1.5 billion investment aimed at enhancing smelter operations and increasing the production of value-added products.

Furthermore, Vedanta is ramping up its zinc alloy production with a 30,000-tonne per annum plant, highlighting its focus on high-margin businesses.

Anil-Agarwal-led Vedanta, a subsidiary of Vedanta Resources, is a global conglomerate specializing in natural resources and technology with operations spanning India, South Africa, Liberia, and Namibia. The company’s portfolio is diversified across sectors such as Oil & Gas, Zinc-Lead-Silver, Aluminium, Iron Ore, Steel, Copper, Ferro Alloys, Power, Nickel, Semiconductors, and Glass.

Vedanta share price performance

Over the past year, the shares of Vedanta registered a gain of 6.12%, while the year-to-date (YTD) change indicates a decline of 1.91%. The six-month period recorded a drop of 2.02%, whereas the three-month duration posted a gain of 3.31%. Meanwhile, the one-month period saw a substantial rise of 14.62%.

Vedanta shares closed 6.9% higher at Rs 435.90 on the BSE on Monday.

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