Vedanta doubles South African zinc production capacity
Vedanta invests nearly US$600mn in Gamsberg Phase II, doubling South African zinc capacity to 500,000 tonnes annually.
Vedanta Limited, the flagship company of the Vedanta Group, has announced the doubling of annual zinc production capacity at its South African zinc operations to 500,000 tonnes¹
The expansion involves an investment of nearly US$ 600mn in Phase II of the Gamsberg project, operated by Vedanta Zinc International (VZI). The expanded facility was inaugurated by South African President Cyril Ramaphosa and Vedanta Limited Director Priya Agarwal-Hebbar.
Located in South Africa’s Northern Cape province, Gamsberg is VZI’s flagship zinc mine and hosts one of the world’s most significant zinc deposits. The expansion represents one of the largest mining investments in South Africa during the current decade.
The project further reinforces Vedanta Limited’s position as the world’s largest² zinc producer, supporting its ambition to achieve annual production of 3 million tonnes across India and South Africa. Of this target, 2 million tonnes are expected to come from its subsidiary, Hindustan Zinc Limited (NSE: HINDZINC; BSE: 500188), the world’s largest integrated zinc producer, while Vedanta Zinc International aims to contribute 1 million tonnes annually.
With zinc playing a crucial role in modern industrial and infrastructure development, global consumption continues to rise. Through galvanisation, zinc protects steel, the world’s most widely used metal, against corrosion, prolonging its lifespan and enabling its use across construction, automotive, manufacturing and other industries. Together, Hindustan Zinc and Vedanta Zinc International strengthen Vedanta Limited’s ability to meet the increasing global demand for zinc.
The Gamsberg Phase II expansion is part of Vedanta’s ZAR 21 billion investment commitment, equivalent to nearly US$ 1.5bn, announced at the 2018 South Africa Investment Conference. At the 18th BRICS Summit held in New Delhi last month, President Ramaphosa urged greater Indian investment in key South African industries. Vedanta’s continued investment in the Northern Cape highlights the practical benefits of the strengthening economic partnership between India and South Africa.
South African president Cyril Ramaphosa said, “We have come to celebrate an investment that has moved from commitment to construction, and from construction to production. We welcome Vedanta’s ambition to establish zinc smelting capacity in the Northern Cape. Government must work with Vedanta and other partners to address their requirements.”
Priya Agarwal-Hebbar, director of Vedanta and Chairperson of Hindustan Zinc, said, “For Vedanta, Gamsberg Phase II is more than an expansion of its zinc business. It is a commitment to South Africa’s future. My father, Vedanta founder and Chairman Anil Agarwal, made that commitment with the belief that the country’s mineral wealth could become a foundation for industrial growth, jobs and opportunity. Today, I am proud to see that vision coming to life. Our ambition is to build a globally significant zinc and industrial hub in the region., creating lasting value for the country and its people. The true measure of our success is not just what we produce, but the prosperity we help create for generations to come,”
In addition to generating employment through its operations, Vedanta has invested nearly US$ 20 million in community development initiatives across South Africa since acquiring Vedanta Zinc International in 2011. These programmes focus on healthcare, education, care centres, sports, livelihood opportunities, infrastructure and social welfare, benefiting more than 32,000 people annually. Earlier this year, Vedanta Zinc International also inaugurated an oncology centre in Namakwa as part of its priority community development initiatives.