Vedanta Invests US$ 600M to Expand South Africa Zinc Operations

Vedanta Group’s flagship company, Vedanta Ltd announces the doubling of its annual zinc production capacity to 500,000 tonnes at its South Africa zinc operations. This is through an investment of nearly US$ 600 million (Mn) at Gamsberg (Phase II) at Vedanta Zinc International (VZI). South African President Cyril Ramaphosa and Vedanta Ltd Director Priya Agarwal-Hebbar inaugurated this expansion. Gamsberg, in South Africa’s Northern Cape province, has one of the world’s most significant zinc deposits and VZI’s flagship zinc mine. This expansion marks one of the largest mining investments in South Africa in this decade.

The expansion further advances Vedanta Ltd’s position as the world’s largest zinc producer, with a vision of achieving 3 million tonnes of annual production across India and South Africa. Of this, 2 million tonnes are targeted from its subsidiary, Hindustan Zinc Ltd, the world’s largest integrated zinc producer, while Vedanta Zinc International business aims to contribute 1 million tonnes annually.

Zinc consumption is growing rapidly, as it is essential to modern industrial and infrastructure development. Through galvanization, it protects steel, the world’s most widely used metal, from corrosion, extending its service life and supporting applications across construction, automotive, manufacturing, and other sectors. Together, Hindustan Zinc and Vedanta Zinc International strengthen Vedanta Ltd’s position to serve this growing global demand for zinc.

This expansion forms part of the ZAR 21 billion (Bn)—nearly US$ 1.5 Bn—investment commitment Vedanta made at the 2018 South Africa Investment Conference. At last month’s 18th BRICS Summit in New Delhi, President Ramaphosa called for increased Indian investment in key South African industries. Vedanta’s continued investment in the Northern Cape demonstrates the tangible value of this growing economic partnership.

“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,” said South Africa President Ramaphosa.

“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,” said Priya Agarwal-Hebbar, Director - Vedanta, and Chairperson of Hindustan Zinc.

Beyond the employment created at its operations, Vedanta has invested nearly US$ 20 Mn in community initiatives in South Africa since acquiring Vedanta Zinc International in 2011. Focused on health, education, care centers, sport, livelihoods, infrastructure, and social welfare, these initiatives benefit more than 32,000 people each year. Vedanta Zinc International also opened an oncology center, a priority community project, in Namakwa earlier this year.

For more information: www.vedantalimited.com