Vedanta Ltd has invested nearly $600 million to double the annual zinc production capacity of its South African operations to 500,000 tonnes, as the company targets annual production of 3 million tonnes across India and South Africa.
The investment in South Africa's Gamsberg, Vedanta Zinc International’s flagship zinc mine, is part of the company’s broader ambition to increase its zinc production capacity across its Indian and South African businesses.
Vedanta aims to produce 2 million tonnes annually through its subsidiary Hindustan Zinc Ltd and 1 million tonnes through Vedanta Zinc International.
The expansion is part of a ZAR 21 billion (nearly $1.5 billion) investment commitment Vedanta made at the 2018 South Africa Investment Conference. The company described the Gamsberg expansion as one of the largest mining investments in South Africa in the current decade.
The expansion at the second phase of its Gamsberg mine in Northern Cape province was inaugurated by South African President Cyril Ramaphosa and Vedanta director Priya Agarwal-Hebbar on Sunday.
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Ramaphosa welcomed the investment and said the South African government would work with Vedanta and other partners to address the company’s requirements.
“We welcome Vedanta’s ambition to establish zinc smelting capacity in the Northern Cape,” he said, adding that the investment had progressed from commitment to construction and production.
The expansion comes as Vedanta seeks to strengthen its position in the global zinc market. Zinc is essential to industrial and infrastructure development, particularly because galvanisation, in which zinc is used, protects steel from corrosion and extends its service life. Zinc is used across construction, automotive and manufacturing industries.
Priya Agarwal-Hebbar said the expansion reflected the company’s commitment to South Africa and its ambition to develop a significant zinc and industrial hub in the region.